Farmers Weekly NZ June 17 2019

8

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Vol 18 No 23, June 17, 2019

Emptiness worries meat man

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Outlook is rosy Luke Chivers and Stephen Bell

I

N A global environment characterised by increasing uncertainty the primary sectors are continuing to deliver, Agriculture Minister Damien O’Connor says.

Joined by 100 farmers and industry leaders at the National Fieldays O’Connor launched the latest Situation and Outlook report for Primary Industries (SOPI) produced by MPI. “It’s great news across the sector with headline figures showing continued growth.”

Agricultural exports have risen $7.5 billion in the last two years but returns are expected to soften his year before growing again, O’Connor said.

Export returns for primary produce in the year to June 30 are expected to be $45.7b.

The report also predicts a slight fall in the coming year before returns start climbing again, to reach $48.5b in 2023.

“Horticulture has continued to be the star performer with its focus on the customer resulting in its success,” O’Connor said.

“The meat sector is solid and is likely to continue that way given the challenges in China with their pork production.

“We’re also seeing aquaculture grow which is a real positive.

“But farmers can’t assume

those commodity prices will continue to stay up unless we coordinate and collaborate our sales efforts.

“And farmers must still work hard to make sure they get a good profit.”

Despite economic and political uncertainty affecting world markets, New Zealand’s returns have remained solid and though there is continuing risk it is offset to some extent by the weak dollar.

“This export performance by NZ’s primary sector producers is all the more impressive considering the weakening global economic environment and the high degree of uncertainty creating tensions across international markets,” MPI director-general Ray Smith said.

However, given the uncertain international backdrop and despite strong export performance the downside risks to the forecast are heightened over the next few years.

Production and returns are expected to fall slightly in the next year before resuming moderate momentum in the medium term in meat, dairy and horticulture.

Sustained Chinese and southeast Asian demand is supporting strong prices and the weak dollar is expected to

CHALLENGING: Primary industry export revenue is expected to jump by more than 7% this year to $45.6 billion, Agriculture Minister Damien O’Connor told industry leaders at the National Fieldays when he attended with Prime Minister Jacinda Ardern.

We are moving into challenging economic environments and trade is being kicked around like a football.

Damien O’Connor Agriculture Minister continue supporting export returns.

“Strength in prices supported by an increasing proportion of higher-value products is expected

to sustain growth in dairy export revenue despite constraints on milk production growth,” Smith said.

“NZ’s current run of export success over the past two years has occurred despite a rising sense of uncertainty in global markets.

“This is in part because the products we trade in haven’t been directly affected so are and in part because the NZ dollar has fallen over the past two years.

“However, these issues do provide an increasingly uncertain backdrop to the otherwise positive outlook.”

The clouds include slowing

global economic growth expectations, rising protectionist sentiment and uncertainty caused

by Brexit, United States-China trade tensions and outbreaks of African swine fever.

But the bigger concern for NZ is their potential impact on consumer demand in Britain, America and China.

“We are moving into challenging economic environments and trade is being kicked around like a football,” O’Connor said.

“Our sector shouldn’t assume anything and will need to

Continued page 5

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NEWS

WEATHER OVERVIEW

8 Tree growth worries meat firms Meat companies are trying to quantify the impact on their business from land use changing from livestock to forestry.

Newsmaker ������������������������������������������������������22 New Thinking ��������������������������������������������������23 Opinion ������������������������������������������������������������24

We have a variety of weather this week kicking off on a cold note then settled and sunny mid-week followed by warmer and wetter late week. A polar change is coming through on Monday, mostly in southern and eastern areas of both islands but not really impacting the upper North Island. On Tuesday high pressure rolls in with some, mostly light, frosts likely in both islands in sheltered areas. The high departs late on Wednesday and by Thursday a sub-tropical airflow moves in. A Tasman Sea low is expected to cross New Zealand with a burst of rain on Thursday. This weekend is a little complicated. There might be more showers and hit-and-miss heavy downpours then southerlies again early next week.

Pasture Growth Index Above normal Near normal Below normal

7-DAY TRENDS

Rain

Wind

Showers on Monday, mainly in southern and eastern regions of both islands. Dry weather for Tuesday and Wednesday. Rain crosses the country on Thursday then showers continue for Friday and through the weekend and into next Monday.

ON FARM STORY

South to southwest winds dominate to begin this week but high pressure on Tuesday and Wednesday means light winds for most. By Thursday milder northerly winds, sub-tropical for some, come through then more south to southwest this weekend.

Highlights/ Extremes

Temperature Colder for many this week, especially overnight with below-normal temperatures for some. However, the week does warm up a little thanks to a sub-tropical northerly around late Wednesday and Thursday. Cooler south to southwest winds return this weekend and next Monday.

28 Having the best of both worlds

NZX PASTURE GROWTH INDEX – Next 15 days

The main feature this week is a chance of frosts on Tuesday and Wednesday mornings. High pressure crosses NZ on Wednesday. A Tasman Sea low crosses NZ on Thursday.

14-DAY OUTLOOK

The soil moisture deficit map, for the first time in 2019, finally looks healthy and normal. While rainfall figures are well down on where they should be the soil moisture levels have at least bounced back. On top of that, the warmer-thanaverage days we’ve been frequently receiving are keeping the grass growing. Rain last week in Hawke’s Bay will also be a real positive. Some light frosts this week and cooler days might stunt growth but sunshine will still see some growth.

SOIL MOISTURE INDEX – 13/06/2019

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REGULARS Real Estate �������������������������������������������������30-33 Employment ����������������������������������������������������34 Classifieds ��������������������������������������������������������34 Livestock ����������������������������������������������������������35 Markets �������������������������������������������������������36-40 GlobalHQ is a farming family owned business that donates 1% of advertising revenue to the Rural Support Trust.

Thanks to our Farmers Weekly and Dairy Farmer advertisers this week: $560. Need help now? You can talk to someone who understands the pressures of farming by phoning your local Rural Support Trust on 0800 787 254.

Source: WeatherWatch.co.nz

This product is powered by NIWA Data

For more weather information go to farmersweekly.co.nz/weather

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News

FARMERS WEEKLY – farmersweekly.co.nz – June 17, 2019

3

Cattle culls don’t rely on tests Annette Scott annette.scott@globalhq.co.nz HERDS with cattle bought from properties confirmed as being infected with Mycoplasma bovis will be culled, regardless of test results, Primary Industries Ministry chief science adviser John Roche says.

More efficient testing is in the pipeline but it’s several years away.

In the meantime any herds containing cattle from properties confirmed as infected will be considered extremely high risk and will also be culled, Roche said.

Tests being used are adequate to determine the need to cull infected and extremely high risk animals.

Contrary to some farmer and industry perception the response is certainly not doing half-done testing, Roche said.

The tests are not 100% reliable but are the best available and doing the job effectively enough to confidently make calls on culling herds.

“There is no accurately precise test but these tests are not as inaccurate as some may believe.

They all have indicators of something there.

“We are very confident when we make a call to depopulate that there is either an absolute positive for presence of the disease or indicators of extremely high risk.”

Roche said following the advice of the technical advisory group (TAG) after last spring the call on depopulation changed.

“They said we needed to start depopulating on the basis of the Elisa results and this means there may not be an absolute positive but when the indicators are all weighed up the herd is deemed extremely high risk of spreading the disease.

“If we get forward movement of animals off an infected farm we depopulate all those animals.

SURE: The Primary Industries Ministry is confident when it decides to cull cattle there is sufficient risk to justify that, even without an absolute positive test, chief science adviser Dr John Roche says.

“This is such an infectious disease these animals will pass it on. They do have to go.

“I can understand the confusion because a farmer may have animals off that infected farm and they may not have a positive PCR test but it is too great a risk not to take those animals if it’s proven they have moved during the time of infection.”

Roche said diagnosing the disease is hugely challenging and testing is only part of it.

“Tracing forward and back movements is fundamental to the eradication and management of the disease.

“If we didn’t have the problem with Nait compliance we could trace off infected farms so much more quickly and we would close down high-risk farms very quickly, that would slow down the spread and help with depopulation.”

Work is being done internationally to see if it’s possible to trace the bacteria in an animal’s body once it’s been exposed to the disease.

“It is possible that where this bug goes and hides would be sending out signals that we’re not yet looking for and could lead to being able to test for M bovis when the cattle are not actively shedding the disease.”

Last month MPI put out a worldwide call for diagnostics research proposals. The Government has committed $30 million for science investment to support the eradication programme.

Roche said the focus is on diagnostic tools that will contribute towards national surveillance testing and on enhancing diagnostic test performance at the herd level.

The group is also interested in tools that can be used on germplasm.

So far the response has been encouraging.

“There’s a bunch of diagnostic experts around the world lining up to apply for the fund to develop a test that will be highly sensitive.

“Our desire is that test will identify the presence of M bovis when the animal is not shedding.

It will be a far more sensitive test than PCR or Elisa.

“We are just through year one.

It will be year four onwards before we have a test that will pick up the disease more accurately and more rapidly.”

The science group is also looking for people to make the existing tests more sensitive.

“That could be in our sampling, extraction methods or the laboratory methods we are using.

We are just through year one. It will be year four onwards before we have a test that will pick up the disease more accurately.

John Roche MPI

“There are companies overseas that believe they can improve the methodology we are using and that would speed up detection of the disease.

“I am confident we are getting ahead of this disease. We will keep battling with what we have got,” he said.

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Class of 2018 (From left to right) Arthur Acland, Matt Watson, George Goodall, Kate Robinson, Anna Vaughan, Olivia Rhodes and Samuel O’Fee.

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News

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – June 17, 2019

Progress persists amid disruption THE growing focus on food as medicine is driving massive change in the agri-food industry, KPMG agri-food senior manager Emma Wheeler says.

Writing in the 2019 Agribusiness Agenda she said the health and wellness decade has begun and is bringing disruption through innovation and technological transformation.

Consumer needs and demands underpin the pace of change.

The health and wellness food market is valued at US$769 billion.

“It is our view this is still (early days) and we will see the trend accelerate exponentially in the coming decade,” she said.

The rapid expansion of noncommunicable diseases like cardio-vascular disease, obesity and diabetes is largely due to lifestyle.

Over 70% of all deaths in the world in 2016 were from those diseases.

“The impact of people not having access to enough food,

Forecast income Primary industries export revenue 2015-23 (NZ$ million) Forecast Year to June 30

2019

2023

Dairy

17,610

18,820

Meat and wool

10,150

10,190

6880

7080

Horticulture

6110

6960

Seafood

1910

2100

235

265

Forestry

Arable

2800

3060

Total exports

Other primary sector exports*

45,695

48,475

% change

+7.1%

+2.1%

Source: Stats NZ and MPI * Other Primary Sector Exports and Foods includes live animals, honey, and processed foods.

the right nutrients or eating too much of the wrong types of food is massive on the health of the global community,” Wheeler said.

The potential cure can be found in the strong link between diet and health.

Consumers are increasingly turning to food as a longer-term health solution.

The big food companies are making acquisitions and partnerships in that area and cutting down the sugars, artificial flavourings and preservatives in their products.

“Less is more with free-from foods gaining popularity, with products that are as close to their natural state as possible.”

Wheeler said New Zealand can’t continue to be home to one of the world’s unhealthiest communities.

Every food producer should recognise the benefits gained from working with the Government, schools and community organisations to make sure every New Zealander has access to the food they need for sustainably improved health outcomes before the first tonne is exported.

“Inadequately feeding our five million is not an option if we want to tell the world about the natural, healthy, nutritionally dense food we grow in NZ.” The publication this year of a

decade of Agribusiness Agendas gave the KPMG authors a chance to look back on their own case studies and predictions and chart progress from volume to value.

Global agribusiness head and lead author Ian Proudfoot said it is apparent real and measurable progress has been made in transforming the primary and processing industries.

Given the cost structure and the expectations of the community over producers’ use of the environment that our place in the global food system is supplying premium products to the most discerning consumers around the world producers now understand the use of land and water is a privilege granted by the wider community, not an irrefutable right passed from father to son.

“We believe that most in the industry now recognise that land is borrowed from our children rather than inherited from our parents.”

Proudfoot hailed the connectedness of sector leaders and the innovative collaboration that has resulted.

Maori perspectives and longer time horizons are coming into decision-making and resonate with Asian customers, in particular.

Managing pasture performance Managing farm stock performance is like a sitting on a three-legged stool – Pasture growth, Animal genetics and Grazing management – the weakest leg determines the strength of your stock’s performance.

When considering pasture performance, it’s clear that improving pasture quality leads to greater increases in farm profitability than simply growing a larger quantity by throwing Nitrogen at it.

Measuring pasture quantity is easily achieved using a plate-meter.

Calculations can then be used to convert pasture height to dry matter and then to milk solids, protein etc. These calculations are based on a series of assumptions that don’t usually take actual pasture quality into consideration.

To illustrate my point using extremes, if we plate-metered Barley Straw without taking nutritional quality into account, we could reach the same calculated dry matter content as a stand of Lucerne but obviously the nutritional value to stock will be vastly different.

To maximise stock performance, pasture must be, (a) Appetising – if stock find the pasture appetising, pasture

utilisation increases resulting in less trampled feed and more will be turned into protein, (b) Nutritious – it should have a good balance of all minerals and trace elements. Cobalt, in relation to this discussion, plays a big part in stock appetite along with their ability to efficiently digest their pasture intake. (c) High energy content – pasture with increased carbohydrates provide stock with increased energy allowing them to forage more effectively providing them with the energy to efficiently digest and convert their dietary intake into protein.

Laboratory herbage analysis provides an accurate measurement of pasture quality. Herbage analysis clearly identifies any mineral or trace element deficiencies that may be limiting pasture growth or stock performance.

By identifying the limiting factors fertiliser applications can be focused to achieve the greatest return on fertiliser investment dollars. Considering that the cost of a herbage analysis equates to a few shovels of fertiliser, there is no doubt in my mind that they are the most under-utilised tool when evaluating what is usually the largest annual farm spend.

WELLBEING: Consumers are looking to food for long-term health benefits, KPMG manager Emma Wheeler says.

Farmers now know themselves to be food producers and efforts made in the past decade to provide clearer market signals will help accelerate value capture.

But confidence is low despite all the good measures of progress and good financial returns, largely because positive messages are being drowned out by criticism.

Farmers have been told they are from the past, are bad for the environment and that they underpay their labour.

“Even if you know these claims to be inherently wrong, many end up believing them.”

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News

FARMERS WEEKLY – farmersweekly.co.nz – June 17, 2019

5

Insatiable Chinese push up prices Neal Wallace neal.wallace@globalhq.co.nz EXPORTERS should be in for another prosperous year but the latest ANZ Agri Focus report warns slowing global growth and trade tensions could dampen the optimistic outlook.

“So far our export sectors haven’t been negatively impacted by trade tensions in China but this is a key risk for exporters,” ANZ agri economist Susan Kilsby says.

She predicts a $7.30kg/MS milk price next season, more ambitious than Fonterra’s forecast range of $6.25-$7.25kg/MS. Production in the United States has fallen, in part because of the decline in demand for low-grade whey, which is sold to China as pig feed.

Kilsby says growing demand for beef is prompting some Chinese dairy farmers to cull cows while development of large-scale dairy farms is slowing because of unprofitability, thus creating opportunities for dairy exporters.

Continued from page 1 co-ordinate and collaborate our efforts offshore, ensuring the rules of trade are adhered to and continuing to produce better quality products for high-value customers is the only way we are going to success in the long term.”

On the plus side the Comprehensive and Progressive Trans Pacific Partnership has the potential to deliver $222 million of tariff savings and open new export destinations.

“Tariffs were reduced immediately for some of the sectors and clearly the opportunities in horticulture have been taken up by people,” O’Connor said.

“It’s one positive step forward to a better inter-national trade environment.

“It doesn’t solve everything but it’s been a huge boost in opportunities for people.”

Primary produce exporters must ensure they have

Continued strong demand and a weak New Zealand dollar will underpin another season of strong meat prices with beef benefiting from NZ product being diverted from the US to satisfy Chinese demand.

“While beef exports to China are still low compared to our competitors, the Chinese market’s appetite for Kiwi beef is growing rapidly, which is encouraging for local farmers,” she says.

Traditionally, prices ease at the peak of the season but that did not happen this year because of demand for protein from China, which she described as insatiable because of the shortage in domestic pork production.

Kilsby warned China could overheat with new competition from Brazil, Argentina and Ireland, which have or are seeking to become approved beef suppliers.

“While the lift in demand from China can only be described as fantastic for NZ, it does bear some

contingency plans for Brexit because of the wide range of outcomes possible, including a no-deal, O’Connor said.

“NZ needs to negotiate with the European Union and with the United Kingdom and both of those negotiations will be challenging given the uncertainty around Brexit.

“We’re hoping to be one of the first countries, if not the first, to sign trade agreements with the EU and the UK once they sort Brexit out.

“Farmers need to consider the mixed farm operations that give them a number of different income streams to manage the volatility and disruptions that will inevitably occur into the future.”

GOOD AND BAD: Bright prospects for exporters are tinged with some warnings, ANZ agri economist Susan Kilsby says.

of the hallmarks of the rampant Chinese demand for dairy products, which occurred in

2015, only to crash away as importers overestimated end-user demand.”

Top 10 export destinations

Top 10 export destinations

Year ended March 2019

Year ended March 2019

EU

China

(excl. UK) $3,320m

$13,550m

Japan

$2,542m

South Korea

UK

$1,325m

$1,199m

Taiwan

Malaysia $978m

$1,149m

US

Hong Kong $1,031m

$4,112m

Australia $4,556

MORE:

Listen to Farmers Weekly journalist Luke Chivers speak to Agriculture Minister Damien O’Connor about the Situation and Outlook for Primary Industries report at National Fieldays on farmersweekly.co.nz

The number of NZ lambs killed in the year to mid May was 5% lower than the previous year and Kilsby questions whether the forecast 19.05m lambs will be processed given ewe lamb retentions on the back of high ewe prices. Lamb weights are on average 0.6kg higher this year than last, alone boosting returns to farmers by 3%.

China is underpinning demand for lamb, a market she says increasingly wants high-value cuts.

The market for coarse wool remains weak but finer crossbred and lambs’ wool have had their moments though prices fell recently.

“Chinese manufacturers appear to be even less committed to purchases due to the uncertainty of end-market demand.

“The trade war between the US and China is making factories in China take a more cautious approach as they are less certain they will be able to move finished goods.”

Product

Total export revenue $ million (March 2019)

% of Total

17,689 10,184 6,837 5,874 1,870 216 2,700 45,370

39% 22% 15% 13% 4% 0% 6% 100%

Dairy Meat and Wool Forestry Horticulture Seafood Arable Other primary sector Total primary industries

Source: MPI

Top markets ($NZ millions, year ended March 2019) All exports

Dairy 30%

China

10% 9% 7% 6% 3% 3%

Australia US

Japan

Target 10% p.a.**

Japan

Forestry 30% 20%

China

7% 4% 4% 4% 4% 3%

US

15%

EU (excl. UK)

50%

China

10% 7% 6% 5% 4% 3%

Australia Sth Korea

Rising consumption of craft beer has international brewers crying out for New Zealand-bred aroma hops and the unique flavours they bring to beer. But we need to grow more to meet demand.

EU (excl. UK)

The Growing Fund

Meat and Wool 31%

China Australia

Sth Korea UK

Malaysia US

Philippines UAE

3% 2% 2%

Taiwan Hong Kong Malaysia

Indonesia Thailand

Hong Kong

26%

All Other

6% 4% 4% 3%

UK

Japan

Australia

Taiwan

3% 3% 3%

Canada

Indonesia

35%

India

US

Indonesia

2% 2% 1%

Sth Korea

All Other

Japan

2% 2% 2%

Thailand

Malaysia

Hong Kong

13%

All Other

10%

All Other

That’s why Kakariki Fund Limited is planning to invest in the development of a 130-canopy Seafood Arableheartland of Nelson. Other Horticulture hectare hop garden down in the hop growing China EU (excl. UK) Australia 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000

0 1,000

2,000

3,000

4,000

5,000

18%

EU (excl. UK)

6,000

0

500

1,000

1,500

2,000

2,500

32%

3,000

0

500 1,000 1,500 2,000 2,500 3,000

3500

44%

40%

Australia Australia China 12% 14% 13% 17% Kakariki is a New Zealand investment company enabling kiwis* to invest in7%hard-to-access, US Japan US 13% 13% 7% Japan Hong Kong EU 5% 12% permanent 13%that have delivered 7% large-scale crops spectacular increases in grower returns.

Japan Switzerland

Australia US China

(excl. UK)

12%

Japan

6%

5%

5%

South Korea

Kong South Africa Singapore 5% 9% 3% 4% We target returnsHongTaiwan of 10% p.a.** or more from high-value, permanent crops including kiwifruit, Chile US 5% 3% 4% 4% TM 3% UK Korea Sth Korea 3% 3% 2% sweet cherries, Sthplantation manuka, avocados and aroma hops. vineyards, Rockit Canadaapples,

UK Taiwan Canada

3% 2%

Sth Korea Hong Kong 0

200

2% 1%

Singapore

12%

All Other 400

600

800

1,000

1,200

0

100

2% 2%

UK

China

12%

All Other 200

300

400

500

600

700

0

10

2%

EU (excl. UK)

1%

Canada

9%

All Other 20

30

11%

All Other 40

50

60

70

80

90

0

200

400

600

800 1,000 1,200 1,400

Find out how you can share in the growth of our horticultural champions. Watch SOPI JUNE 2019 • 7 the video and request an Information Memorandum at kakarikifund.co.nz

Minimum investment $100,000.

Offer closes Wednesday 26 June 2019.

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News

FARMERS WEEKLY – farmersweekly.co.nz – June 17, 2019

7

Southerners offer to run Taratahi Neal Wallace neal.wallace@globalhq.co.nz INVERCARGILL’S Southern Institute of Technology has offered to re-open and run Taratahi Agricultural Training Centre in Wairarapa.

It closed in December after being put in liquidation.

That is one of two proposals to resurrect training at Taratahi, with the Wairarapa community initiating a plan to create a primary sector education hub based on the farm.

Taratahi owes $18.4 million to 286 secured and 1194 unsecured creditors.

In February its Otago campus, Telford, was thrown a lifeline when the institute offered to delivery primary sector education there.

The Government agreed but for this year only.

Institute chief executive Penny Simmonds met Education Minister Chris Hipkins a few months ago and offered to resurrect training at Taratahi.

Decisions on that proposal and its future involvement at Telford are on hold until the Government completes a review of polytechnics and vocational training.

“We’ve flagged to the minister in the last few months that now we have got some comfort with Telford that we would be prepared to consider running Taratahi,” she said.

A spokeswoman for Hipkins said he is waiting for advice from officials. At this stage that is the only proposal to run the Telford campus.

The Wairarapa community is working on a broader primary sector training structure built around the Taratahi farm.

The farm can be sold

only with the approval of Agriculture Minister Damien O’Connor and Wairarapa Federated Farmers president William Beetham said O’Connor wants it kept for vocational training.

The region’s community leaders recently hosted a meeting with Government ministers and national farming groups to discuss developing a primary sector training hub in Wairarapa.

Beetham says they are developing the proposal he is not dismissive of the institute.

We’ve flagged to the minister in the last few months that now we have got some comfort with Telford that we would be prepared to consider running Taratahi.

Penny Simmonds Southern Institute of Technology “The community thinks if they are interested in taking on Taratahi it would be well worth working with the community and the best place to do that is through the Wairarapa Economic Development Governance Group.”

Simmonds says her offer to Hipkins was verbal and she is waiting for a response before deciding whether to take it further.

She expected answers from him by May but now hopes for a response next month.

Taratahi would fit the model in which the institute already operates remote campuses in Auckland, Christchurch, Queenstown and Gore.

“We have experience in managing distance learning.”

Telford this year has 87 effective full-time students, the low number caused by uncertainty following the liquidation and getting access to the campus only in February.

Despite the uncertainty over the institute’s involvement at Telford next year, marketing for students has started and Simmonds hopes to progressively grow enrollments to 200 with 100 living on campus and the rest doing short-term block causes.

She is confident teaching will be offered at Telford next year either by the institute or another provider.

The institute is also looking to tap into the international student market in a bid to fill the shortage of skilled primary sector workers.

It has also broadened the courses offered at Telford by introducing Te Reo, photography and construction, programmes that align with what is offered at its Invercargill campus.

Taratahi’s collapse affected about 250 staff and 1200 students at the Wairarapa campus while Telford had 13 redundancies.

The liquidator, Grant Thornton, reported in March that at the time of collapse Taratahi had assets of $16.9m but liabilities of $31m.

Preferential creditors included $2m owed to staff and $655,000 to Inland Revenue. Another $15.8m is owed to 1194 unsecured creditors.

MORE: Southern Institute of Technology chief executive Penny Simmonds wants to keep running courses at Telford and expand to Taratahi.

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News

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – June 17, 2019

Tree growth worries meat firms Neal Wallace neal.wallace@globalhq.co.nz MEAT companies are trying to quantify the impact on their business from land use changing from livestock to forestry.

The pastoral sector is collaborating to quantify the scale and impact of livestock being displaced by new forest plantings to offset greenhouse gas emissions, Meat Industry Association chief executive Tim Ritchie says.

Rural community leaders estimate more than 30,000ha of farmland, mostly on the North Island’s East Coast, has converted from pasture to exotic forest in the last year, encouraged by investors farming for carbon credits and Government planting subsidies.

The group is also making submissions to the Government on what its members view as an inequitable policy favouring fossil fuel emitters over livestock farmers, which could harm the meat sector and its 25,000 employees.

“Big farmers cannot offset their emissions by planting gullies but big carbon dioxide emitters like Air New Zealand can come in and purchase farms to plant in trees.”

It is a short-term solution, he warns.

“It is only a temporary solution, which might make NZ feel good but if we are still emitting carbon dioxide then we will have to continue planting forestry and we may run out of land.”

The association is not opposed to forestry but the blunt way it is being implemented creates unintended consequences for rural communities.

“It will have a real impact in the so-called wellbeing of regional NZ.” Beef + Lamb is also part of that group and its chief insight officer Jeremy Baker says it is highlighting pine plantations being used by

GHOSTS: Progressive Meats boss Craig Hickson has seen empty farm buildings and communities on the North Island’s East Coast.

That is consigning land to provide no more economic value.

Craig Hickson Progressive Meats fossil fuel emitters to park their pollution on productive land.

Pine plantations sequester carbon for only 30 years.

“We find it perverse that the Zero Carbon Bill enables fossil fuel emitters to continue to emit and plant their long-term emissions on productive land while not recognising native forests on sheep and beef land as an offset for short-term biological emissions.”

Baker says B+LNZ, MIA and

Federated Farmers are doing economic analysis and modelling of the economic impact of different mixes of livestock and forestry and their effect on the viability of rural communities.

Hawke’s Bay meat company owner Craig Hickson of Progressive Meats says land use change is a continuum but Government subsidies skew investment behaviour in favour of forestry over livestock.

“For the pastoral sector it’s not a fair playing field determining land use.”

Hickson says carbon farming trees, where investors buy land and plant trees to earn carbon credits, will not change behaviour.

These credits are sold to polluters to offset their carbon dioxide emissions but the land investor does not have to harvest

the trees and because the credits are linked to the land it effectively locks it up in forestry forever.

“That is consigning land to provide no more economic value.”

Land use change should be driven by economics but that has been skewed by the Government paying planting subsidies and giving favourable treatment to foreign forestry investors.

Hickson recently went through the North Island’s East Coast, which had a forestry boom several decades ago, and saw empty farm buildings and communities.

Economically, the region is going backwards because of the scale of land use change.

“We have a real-life example in the East Coast, evidence of what can happen because trees were planted there a long time ago.

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credits for the carbon sequestering vegetation on their land, an issue that should be renegotiated in international climate change agreements, Hickson says.

Silver Fern Farms sustainability head Justin Courtney says while the firm supports the objective of NZ’s climate change goals, mitigation measures must be sustainable for rural communities.

The right trees planted in the right place can enhance the environment, biodiversity and the values used to promote the marketing of NZ meat.

“We do not want to see further hollowing out of rural communities through large-scale, monoculture pine plantations on productive finishing country.

“We have been meeting farmers on our national roadshow and there is anecdotal evidence supporting concern that speculation around carbon policy is driving productive, foodproducing land into plantation forestry.”

The Alliance Group has invested $12m in its Dannevirke plant – in the area of significant land use change to forests – increasing its sheep processing capacity by 20%.

“Our farmers in the lower North Island have been telling us they want us to be able to service their processing needs and this investment underlines the confidence we have in the region,” chief executive David Surveyor said.

An ANZ Agri Insight report says forestry expansion to offset carbon emissions is only buying time until effective and efficient ways to reduce NZ’s carbon dioxide emissions are found.

The report warns Government policies offer incentives to increase the planting of trees.

“Policy changes, grants towards planting costs and the opportunity to gain revenue from carbon credits will all incentivise more trees to be planted.”

For tips and ideas, visit farmstrong.co.nz

THE value of the New Zealand dollar is holding up well around a trade-weighted index of 72.5, ANZ currency strategist Sandeep Parekh said.

In the past month the NZD rose against the United States dollar to 66.5c when it looked likely the Federal Reserve would cut interest rates but it has fallen again to about 65.5.

Against the Australian dollar the NZD is firm at 95c and traded recently in the 94-95c band, Parekh said.

He is not expecting great changes in crossrates in the near term and the market has priced in very low expectation of a further interest rate cut by the Reserve Bank on June 26.

On June 20 the Gross Domestic Product numbers will be released and the market is not expecting anything unusual – more likely the 0.5% quarterly increase already widely predicted.

The NZD has fallen off against the Japanese yen over the past two months, from a high of 76.5 to 71.5 now, because the yen is a safe haven for international currencies.

Commodity prices and volumes are up and the NZD favours exporters, he said.

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News

10 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – June 17, 2019

Muller says Shaw ignored advice Neal Wallace neal.wallace@globalhq.co.nz CLIMATE Change Minister James Shaw has been accused of ignoring advice to have a lower methane reduction target for agriculture than he is advocating.

The recommendation for a reduction range of 22% to 35% was made last November by the Climate Change Chief Executives Board, a cross-agency committee of public sector chief executives.

The National Party’s climate change spokesman Todd Muller says Shaw ignored their advice, that of the Parliamentary Commissioner for the Environment Simon Upton and the Intergovernmental Panel on Climate Change (IPCC).

Instead, the Government opted for a 10% reduction in gross emissions by 2030 and a 24% to 47% reduction by 2050 with no chance for farmers to offset their emissions with tree planting, an option available to carbon dioxide emitters.

Muller also agrees with the board’s alternative recommendation of letting the Independent Climate Change Commission set methane targets.

“I have supported James Shaw establishing independent advisory groups on climate change but this effort becomes pointless if he only listens to advice that suits a political purpose,” Muller said.

“National has disagreed with the Government’s proposed agricultural methane target in the Climate Change Bill and suggested that this matter be

put to the new Climate Change Commission the minister is establishing.”

The board also includes some economic analysis on the cost of greenhouse gas emissions, based on a 25% reduction in methane and net zero emissions of other gases by 2050.

It assesses an annual cost of $2500 for an average dairy farm up to 2025 and that a million hectares of sheep and beef land will be converted to forestry by 2050.

Other assessments estimate forestry expansion could be double that but the board notes sheep and beef are significant industries in Manawatu-Wanganui, Otago and Canterbury, which will be hit hard by emission reduction policies.

The board says its recommended methane reduction range reflected Upton’s advice and the IPCC. Upton said a 22% cut below 2016 levels is needed to prevent more warming from methane but with the proviso the rest of the world also takes action.

The 35% goal is the midpoint in the range set out by the IPCC. “The target for biogenic methane should be to stabilise these emissions within the range 22% to 35% below 2016 levels by 2050,” the board says.

It suggested a process be established to reach agreement in a timely, credible and enduring way.

That includes getting the Climate Change Commission to set an appropriate target.

PACKED IN: Two-tooth Romney ewes from Tuscan Hills farm, which has been sold for forestry conversion, attracted a top price of $214 a head at the Dannevirke winter fair last week.

Farm sales worry stock finishers Colin Williscroft colin.williscroft@globalhq.co.nz FINISHING farm operators are beginning to worry that traditional sources of store stock will be removed from the market with increasing numbers of east coast North Island sheep and beef farms being sold for forestry conversion.

PGG livestock agent Dean Lindsay of Dannevirke said he knows some big Hawke’s Bay finishers are concerned how and where they were going to get store stock in future if more traditional sheep and beef farms go into trees.

One farmer he spoke to, who buys 50,000 lambs a year, is uneasy at the prospect of fewer sources of store lambs coming onto the market, creating increased competition, which will drive prices up.

The number of sheep and beef farms in Wairarapa, Tararua and around Wairoa being sold with an eye to

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It’s really starting to add up and it is a concern.

Lindsay, who was involved in the auction of 600 twotooth Romney ewes and 841 four-year-old Romney ewes at the Dannevirke winter fair on Thursday after the sale of the Tuscan Hills property, near Pahiatua, for conversion to forestry, said many farmers are frustrated at seeing what is very good farmland going into trees.

Subsidies encouraging overseas investors to convert farmland to forestry mean livestock farmers cannot

compete with them on land prices, he said.

It is sad to think wellperforming properties such as Oporae Station, about 40km southeast of Dannevirke, and Te Rimu Station, southwest of Pongaroa, will go into trees.

Also for sale at the fair were 3100 Romney ewes from Houkura Farms, though that property is not going into forestry.

Lindsay said most of the ewes sold went to Manawatu with the rest going to Wairarapa or staying in Tararua.

He was happy with the sale despite heavy rain keeping some buyers away and meaning the animals did not look as good as they could have.

A line of 350 Tusan Hills twotooths went for $214 a head, with another 118 going for $208 a head. The four-year-olds went for $190-$191.

The Houkura ewes averaged $188 across the whole line, with the top two-tooths attracting $205 for a line of just over 300.

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forestry conversion is a significant topic of discussion among livestock farmers, Lindsay said.

“It’s really starting to add up and it is a concern.”

A SEMINAR to promote land use diversification is being held in Hawke’s Bay this month.

The event, hosted by Business Hawke’s Bay (BHB) with support from Central Hawke’s Bay District Council and the Primary Industries Ministry aims to be handson and informative for landowners and investors.

BHB chief executive Carolyn Neville said it is a follow-up to last year’s Future Foods conference in Napier.

“Land diversification is a hot topic at the moment with lots of interest and activity starting to happen.

“The land diversification opportunities event will highlight new, alternative, complementary, value-added and sustainable land uses and give attendees the chance to ask questions of those actively practising land diversification.

Speakers include representatives from the hemp, hop, berry and goat industries, along with MPI investment adviser Tim Hermann who will talk about the Sustainable Food and Fibres Fund, Hawke’s Bay Regional Council central catchment manager Brendan Powell and MyFarm

research head Con Williams.

Central Hawke’s Bay Mayor Alex Walker said the district has a concentration of highly productive and versatile land that is some of the best in the country.

“As we look to the future and the changing landscape of food production this forum is a chance to understand more about different land uses to give us improved financial returns, higher value products and reduced impact on our environment.

“The future is exciting and we can be at the forefront.”

The seminar is in Waipawa on June 25.

News

FARMERS WEEKLY – farmersweekly.co.nz – June 17, 2019

11

Ag is EU deal sticking point Richard Rennie richard.rennie@globalhq.co.nz FIVE rounds of negotiation with the toughest yet to come means sealing a free-trade deal with the European Union by Christmas might be a tough ask, New Zealand head negotiator Martin Harvey says.

Prime Minister Jacinda Ardern earlier this year set the goal of an agreement by year’s end.

“We would now be about three-quarters of the way through it and are just about to start to focus on the different issues that will determine if this is a highquality agreement,” Harvey said.

Some key issues to work through are around common ground on sustainability and making it easy for small to medium enterprises to benefit.

Despite a high level of ambition to eliminate tariffs, the parties parted ways when it came to meat and dairy trade.

“It raises the question, how is it that the EU really will not let us trade dairy and meat products when the EU is the biggest trader in the world?”

Given the expansion in demand for such animal-based proteins there is little reason for the EU to restrict NZ’s trade in those products the way it has in the past.

“While we have more than enough of a quota for sheep meat we are extremely limited in beef and dairy.

“If we can deal with this we can move onto to other areas like agritech and the digital economy.”

Geographic indicators, food names protected under EU regulations, are a problem.

“The EU has submitted 2200 protected names including several hundred food GIs. These went out last year for consultation and feedback from NZ stakeholders.

“We have not yet started negotiating properly as we want to see some comprehensive

market access offered first.

“We have every intention to negotiate on GIs but it needs to be fair and reciprocal.”

Harvey said there has been a sense among Europeans that any imports of NZ dairy will somehow displace their own products but that has not happened in other markets.

The Irish are championing hard for a successful NZ-EU deal, as evidenced by their heavy presence at this year’s Mystery Creek Fieldays and vocal support of the negotiations.

EU ambassador Bernard Savage said the negotiations are taking place during an ominous time in world trade where the worst possible outcome is a rash of bilateral agreements with big countries forcing their demands on smaller ones.

The World Trade Organisation is also in a serious situation with its effectiveness in doubt.

“And this is one of the primary

CHRISTMAS: Getting the New Zealand-European Union free-trade agreement over the line by Christmas is a tough but reaslistic goal, New Zealand lead negotiator Martin Harvey says.

reasons why the EU is pursuing agreements with like-minded partners like NZ, to provide an example of good agreements without undermining multilateral agreements.”

Trade Minister David Parker said the EU is the world’s largest

trade entity with two-way trade between Europe and NZ at 2:1, larger than our United States trade.

“There is a shortage of forwardlooking democracies with respect for human rights, health and wages to work with.”

Brexit a good opportunity for NZ Bryan Gibson bryan.gibson@globalhq.co.nz

JOINT: There’s a huge opportunity for New Zealand and Britain to work together after Brexit, acting high commissioner Helen Smith says.

BRITAIN’S food security issues post-Brexit provide exciting opportunities for New Zealand agriculture, its acting high commissioner Helen Smith says.

The United Kingdom recognises what an important sector agriculture is for NZ and Fieldays is the place to engage with that sector and build contacts and understanding.

“We are, as we leave the European Union, looking at

how we expand our trading relationships around the world and part of that is a lot of importance we’re putting on a potential future free-trade agreement with NZ. “Food security is a big focus for our government at the moment and for many of these organisations who’ve come out.

“We know that by 2050 the world is going to need to produce 60% more food than it does at the moment and the UK is really at the cutting edge of trying to work

out what are the technological solutions that we can bring to address that problem.”

The UK government has put £90 million into research to address food security there.

“And we recognise that there’s huge opportunity for NZ and the UK to work together on that,” Smith said.

And despite the Brexit process still playing out the focus on food won’t change.

“The fundamentals of the challenges aren’t going to change and I also think it’s very unlikely

that any future prime minister or any government would change the level of priority that we’re putting on this area.

“We know it’s an issue we need to address so we’re not going to hit the pause button while we sort out Brexit. We’re ploughing on with solving the issues that we need to solve.”

Smith said 11 agritech companies and research institutes are here to take advantage of Fieldays and look at some of the big opportunities in the agritech sphere for UK/NZ collaboration.

News

12 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – June 17, 2019

Diversify and integrate plan wins Joanna Grigg tempello@xtra.co.nz THE Pyramid is a successful blueprint for a down-country sheep, beef, vineyard and forestry landscape and has won the 2019 Supreme Cawthron Marlborough Environmental Award.

The 612 hectare downland Marlborough property has 15% in rotation woodlots but they are interspersed with highly productive pastures with 25% of the farm in lucerne and the clay-downs in ryegrass/legumes.

Woodlot windfalls fuel a son’s firewood business and the sheltered sites are used to raise queen bees and collect honey for the family apiary business.

Leasing 50ha of the best land for a vineyard was balanced by buying 187ha of undeveloped neighbouring hill and applying the Pyramid’s development model of removing weeds, adding fences, fertiliser and a stock water system, drilling quality pastures and putting the worst 15% in trees.

Owned and farmed by Chris and Julia Dawkins, together with family Richard and Jess and Paddy and Laura, the business was recognised for its excellence in environmental management, the profitability of its ewe flock and bull operation and the business structure to sustain three families and the farm resources.

Judge and consultant Peter Anderson said the 1400 composite ewes weaned 59kg of lamb carcase weight a ewe; well above the 39kg CW national average.

All triplet-bearing ewes spend a few days indoors for lambing, producing a triplet survival of 239% from scanning to weaning and a

farm-wide lamb death rate as low as 14%.

Jersey bulls for the dairy industry and carry-over cows give flexibility to meet pasture growth and quality targets.

Eight hectares of indigenous forest is in a QE II covenant.

Speaking at the winner’s field day, Chris Dawkins said he plants wood and amenity lots every year.

“On top of providing shelter for animals and making better use of unproductive land it’s really improved pasture growth in the leeward side, next to the trees.”

Guest speaker at the field-day, Dr David Hall, University of Auckland, said the integrated landscape is a vision the whole country would benefit from.

It is a landscape with blurred lines that include areas of continuous cover trees, interval forestry and highly productive farmland all worked in together and is completely different from the siloed world.

“The silo approach of distinct and separate land uses is not working out too well for water quality, erosion issues and funding of native forest conservation, for example.”

“It worries me that the climate debate puts political pressure on rural areas but there are not the regulations, market signals or policy chances to help make it sustainable.”

The judges commended the Dawkins for their science and evidence-based approach to farming. They have been monitor farmers, run FITT projects and indoor lambing and novel legume trials and Chris has been actively involved in Beef + Lamb committees and the local farmer of the year competition.

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Massey finds new model for baby beef Richard Rennie richard.rennie@globalhq.co.nz TWIN drivers of environmental and welfare pressure on farmers when dealing with bobby calves prompted Massey University researchers to explore options that will also deliver an economic return to farmers.

Two years into the New Generation Beef project, team leader Dr Nicola Schreurs said initial results indicate taking bobby calves with Jersey genetics and rearing them to eight, 10 or 12 months for processing delivers a product with market potential.

“We are also being careful to distinguish New Generation beef from veal, which, technically, under European Union definitions, it is. But veal brings its own often negative connotations we would rather avoid.”

Those negatives include animal welfare issues and even New Zealand’s traditional bobby calf trade has drawn more than its share of unwelcome welfare issues to the dairy sector.

Working in conjunction with Landcorp’s Pamu farms the researchers have found meat from the Jersey-cross bobby calves has gained strong taste acceptance in trials.

The meat from 10-month old animals was the most preferred across the 8, 10, 12 and 18-month age spectrum offered in taste tests.

“Some would find eightmonth beef a bit too mild while others would find little difference in taste between the 18-month animals’ meat and older sourced meat.”

The university’s food technology staff have also subjected the cuts to an array of objective tests including pH (flavour), shear factor (tenderness) and fat levels, all of which align with consumers’ perception of 10-month-old beef being most preferred.

Further work hopes to determine if pure Jersey calves and heifer calves from heifers could also fit into the preference profile.

“Ultimately, what we wanted to do was explore the options open to farmers to also fulfill what Pamu was aiming to do, which was to reduce the bobby calf output to zero off their farms.”

Schreurs said the researchers are still working on determining the economics of a system that keeps stock for such a short time, finishing at carcase weights significantly lower than traditional finishing weights and times.

“We would like to hope systems could be tailored for

TENDER: Dr Nicola Schreurs has had positive farmer response from research into beef options.

Ultimately, what we wanted to do was explore the options open to farmers to also fulfill what Pamu was aiming to do, which was to reduce the bobby calf output to zero off their farms.

Dr Nicola Schreurs Massey University individual farm systems right across the country.

“As part of our modelling we are looking at different stocking rates, prices and smaller carcase weights with a masters student.”

While still early days in modelling and market development, meat processors are showing some interest.

“We have had good interest from Venison Packers Fielding.

Multi species plants can see the opportunity for processing the smaller animals as another option.”

Some indications are the beef could sell for a price at or slightly above bull beef values.

Further work is going to not only examine the value of heifers from heifers but also

compare steers to bulls of the same genetics, with some processing data just about to be analysed.

“These are still dairy-beef cross animals but down the track we would like to study the economics of straight Jersey animals.”

Environmental concerns about the impact of heavier beef stock on soils and accompanying waterway impacts also sit behind the Massey work.

“Running the lighter, smaller stock may provide some wintering options on more sensitive soils.”

Schreurs said the work fits in well with Beef + Lamb NZ Genetics work run by Rebecca Hickson who is testing dairy beef progeny to determine the optimum genetics for sires to put over dairy cows that will deliver offspring suited to beef farming.

“Hopefully, that work will reveal suitable New Generation Beef sires we can work with.”

Schreurs and her team have been pleasantly surprised by farmers’ interest and support in the project.

“We thought some would say ‘that’s not traditional beef’ but dairy farmers fully support it while beef farmers keep asking where they can send their 12-month beef animals to, even as we work to validate the economics.”

News

FARMERS WEEKLY – farmersweekly.co.nz – June 17, 2019

13

Small kiwifruit have big taste Richard Rennie richard.rennie@globalhq.co.nz

GOING RED: Zespri chief executive Dan Mathieson remains optimistic about the Red kiwifruit variety’s future despite the time taken to get it to market.

Zespri targets use of plastics Richard Rennie richard.rennie@globalhq.co.nz AS GLOBAL demand for kiwifruit continues and a new variety comes close to release Zespri’s chief executive Dan Mathieson is pushing for more sustainable processes in horticulture’s fastest growing sector.

Zespri will lead development of a sustainability framework for the sector in response to growing consumer demand for more sustainable practices throughout the supply chain.

“One area particularly important is plastic and the need to reduce it wherever possible,” he said.

Zespri grower and alliance

officer Dave Courtney said it is no longer enough to simply grow and market the best kiwifruit in the world.

The clamour for more sustainable practices is becoming as strong from Asia as it is in more traditional markets like Europe.

Packaging is a particular concern for consumers seeking to reduce their plastic use.

So far a fully integrated sustainability programme has been absent from the industry, with good agricultural practice standards dealing with some sustainability aspects around orchard management.

But Mathieson said there will be much work ahead removing elements of plastic

packaging used by some key accounts at the final point of sale.

Pressure is on more food producers to address plastic packaging concerns with Canada recently taxing single use plastic packaging and Europe moving ever closer to an all out ban.

Mathieson believes a level of regulation in NZ is required but he hopes to see greater collaborative efforts across the industry between processors and producers to arrive at some industry standard solutions to the issues.

“We would like to be able to encourage innovation in this space. It is a challenge for the entire NZ food industry.”

FRUIT size is providing the headwind to the new kiwifruit season while taste is the tailwind thanks to an exceptional late season ripening period that has left Zespri marketers with a paradigm for foreign markets.

Zespri’s grower alliance manager David Courtney said Green fruit size this season is 2.5 sizes smaller than usual and SunGold two sizes down on usual with the long, dry, ripening period scaling fruit down but pushing up drymatter levels to create exceptionally well flavoured fruit.

“We have had one grower who has been growing kiwifruit for 40 years who said he has never reported better drymatter levels in his crop.”

Zespri chief executive Dan Mathieson said the market has become conditioned to larger fruit.

“So our focus has to be on making sure consumers are seeing value in the smaller fruit.”

So far this appears to be the case with 36 million trays harvested and shipped, up on 30m at the same time in June last year.

“We are experiencing strong repeat purchases and an increase in stock run rates, outstripping our crop supply at the moment.”

This year’s crop comes on the back of last year’s record breaking 140m tray crop and this year is expected to have about 140m trays, split almost evenly for the first time between SunGold and Green fruit.

Mathieson said past investment in markets is paying dividends with some welcome surges in markets including Japan and Spain.

Japan has proved to be a superstar growth market with strong consumer demand

resulting in 26m trays of Green and SunGold sold. The increase has come in a market where demand for fruit in general has declined by 10% in the past decade.

Mathieson said Zespri now has three 20m-plus tray markets with Japan, China at 27m, and now Spain, 20m.

“Spain’s consumers like fruit and have a strong interest in health and nutrition.”

Zespri’s total operating revenue for the financial year was $2.9 billion and the marketer is on track to exceed $3b this year.

The 2025 $4.5b target is quite attainable, Mathieson said.

SunGold licence fees are proving to be a valuable income stream for the marketer, with the latest 700ha of licences touching $290,000 a hectare this season.

Courtney said Zespri has wrestled with options for selling the licences but leaving it to the market and to growers to make their own calculations on risk and return still appears the best option.

Meantime, the much promised Red variety has made a small scale appearance on retail shelves but Zespri is continuing to collect data on its shelf stability with about 30,000 trays sold in NZ last season.

Tens of thousands of trays, rather than hundreds of thousands, are likely to be the volumes for this season.

Courtney said it is uncertain how licensing options will play out for that variety.

He is confident the Red variety will find its own niche with consumers and grow overall sales rather than diminish sales from SunGold or Green.

“If you look back to 1992 we had 50m Green trays and last season we had 70m SunGold, 60m Green sales so the demand has grown with the fruit.”

News

14 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – June 17, 2019

Changes simplify carbon scheme QUICK: Pines grow faster than native trees so begin absorbing carbon more quickly.

How forest carbon is the central plank Neal Wallace neal.wallace@globalhq.co.nz THE Emissions Trading Scheme is the Government’s central weapon to reduce greenhouse gas emissions and forestry is a central plank of it.

The ETS puts a price on greenhouse gas emissions, creating a financial incentive for businesses to invest in technology and practices that reduce emissions.

All emitters except households and biological emissions from agriculture are required to buy and surrender units equivalent to their emissions, known as New Zealand Units (NZU).

In addition to the ETS and forest offsets, the Government’s $240 million Billion Tree fund, a policy of coalition partner NZ First, was launched on November 30 last year.

It provides establishment and planting grants to landowners and through partnerships with landowners from which carbon credits can be earned.

Direct landowner grants of $4000 a hectare are available for planting indigenous species with $1500 a hectare for exotic trees. Another $500 a hectare is available for fencing for landowners establishing up to 300ha a year of forestry.

NZ Units are initially bought from

the Government for $25 a tonne, with one NZU equivalent to one tonne of carbon dioxide.

Businesses that cut their emissions can sell surplus units to those with insufficient units to cover their emissions.

Ownership transactions are recorded by the NZ Emissions Unit Registry.

The Ministry for the Environment says traded NZUs cover about half of NZ emissions.

Last week they were trading for $25.10 a unit, the price influenced by the Government selling NZUs for $25 a tonne, a measure designed to ease the transition for business but also capping the transaction price.

The international price on Wednesday was about NZ$44.

Sectors facing trade competition from producers in countries that do not price carbon have been allocated free NZUs to help them stay competitive.

Forest owners can earn income by selling NZUs from carbon-absorbing trees to businesses to offset their emissions.

They are calculated based on species and age of trees with NZUs bought and sold through carbon traders or online retailers.

Under terms of the Kyoto Protocol,

only forests planted since December 31, 1989, qualify.

They must be at least 1ha in size, of species that will or have reached maturity or 5m in height, have a crown cover of more than 30% per hectare.

Because they grow fast pines quickly begin absorbing carbon, earning NZUs that can be sold.

Depending on age and growth, one hectare of pines will absorb between 15 and 26 tonnes of carbon dioxide a year. A newly planted pine forest will absorb enough carbon in the first 10 to 12 years to recoup the establishment costs.

In the first 30 years native species will absorb a third to a half the amount of carbon that pines do but by age 40 a hectare of kauri or totara will absorb 200 tonnes and 400 tonnes at age 70.

Forest owners meet all costs of administration, monitoring, auditing and compliance and if NZUs are sold or a forest is cut down the owner must either maintain the carbon stock through new planting or offset with NZUs or repay NZUs. The Forest Owners Association calculates NZ’s plantation forests absorb 25m tonnes of carbon dioxide from the atmosphere each year. In 2017 NZ emitted 80.9m tonnes of carbon dioxide equivalent.

Neal Wallace neal.wallace@globalhq.co.nz

CHANGES to the Emissions Trading Scheme simplify how applicable forests earn and repay carbon credits.

Known as an averaging approach, the changes eliminate the need for owners to repay New Zealand Units, equivalent to one tonne of stored carbon, when the trees are harvested provided the land is replanted in trees.

It also simplifies by averaging the calculation of how much carbon is stored in a forest.

The changes also abolish the obligation to repay NZ Units (NZU) for carbon stock reduced by storm or fire and allow landowners to sell their NZU as they earn them.

The ETS entitles owners of forests planted since December 31 1989 to receive one NZU for each tonne of carbon dioxide stored in their forests, known as carbon farming.

Rabobank’s sustainability analyst Blake Holgate says those units can be accumulated or sold on the NZ carbon market.

A Rabobank analysis says weak price signals and changes to climate change policy have made owners hesitant to register applicable forests or plant new forests.

But some of that uncertainty has been removed with the likely passing in to law of the Government’s Zero Carbon Bill setting binding carbon reduction targets, with

the ETS the main tool to reduce emissions.

The changes also remove the requirement for landowners to surrender NZUs equal to the amount of carbon dioxide released when forestry is harvested, provided it is replanted.

Previously, those selling their NZUs before harvesting created a financial liability that couldn’t be valued until harvest time, at which stage they had to go onto the open market to buy NZUs to repay the harvested woodlot.

“This has proven a strong disincentive against carbon farming for many landowners,” Holgate says.

The changes cap the number of NZU an area of forest can earn to its peak storage capacity.

Holgate says a pine forest harvested after 28 years will reach its peak carbon stage at between years 18 and 20, after which it will no longer earn NZU. By that stage it will have earned 473 NZU’s a hectare, which, at $25/ NZU, equates to $11,825 a hectare.

Once that peak average carbon storage level is met ETS participants will no longer receive any more NZU for either the remainder of the growing cycle or subsequent growing cycles.

But the land will have to remain in trees indefinitely or the NZU repaid if the land is deforested.

A new round of NZU can be earned if the forest is replanted in an alternative species that increase the overall average carbon stock.

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News

FARMERS WEEKLY – farmersweekly.co.nz – June 17, 2019

15

Live exports ban plan is a big money blow Annette Scott annette.scott@globalhq.co.nz THE banning of live cattle exports would be a hefty blow on the livestock trading sector, South Island broker Peter Walsh says.

The Government is considering a ban on the live export of cattle as part of a review of the trade in live animals.

Walsh has been involved with live cattle exports for many years and said it’s been a lucrative option for farmers selling livestock.

“There’s no doubting, it will be a hell of thing to have it shut down.

“It will be a significant loss to farmers and livestock trading in general.”

Walsh said the live cattle export market is consistently $200-$300 a head above local market value.

“Like anything the more competition the sharper the pencil, suddenly we lose a key piece of the competition puzzle and it comes down to a single desk sector and that’s a real worry,” Walsh said.

He expressed concerned about

a decision being driven by animal welfare.

“My challenge to all those opposing the live trade is to get involved, tell us what’s wrong and help fix it.

“I don’t think there’s too much wrong at all to fix.

There’s no doubting, it will be a hell of thing to have it shut down.

Peter Walsh Peter Walsh and Associates “These ships are like five-star hotels with the best stockmanship and feed on board that you could ever imagine.

“There’s a lot of good in the live export trade but that’s never highlighted because the animal welfare activists seemingly get the air time and it would be really sad if the decision to stop this trading

is unfairly based on mistruth.”

Walsh said farmers and stakeholders in the livestock industry are as keen as anyone to ensure the highest possible animal welfare.

“We don’t get paid for dead stock.”

While the number of live cattle shipped a year dropped from 40,000 to 17,000 and decreased in value by $54.2 million over the three years 2016-2018, Walsh said it’s still an important option for livestock trading in NZ. Agriculture Minister Damien O’Connor says a conditional ban on the live export of cattle is one of several options being considered as part of a review of the trade in live animals.

The continued export of cattle might be a risk to NZ’s brand.

“The time has come to rethink this area and consider whether it’s something that fits within our values as a country.

“When animals leave NZ we set conditions that are considered world-class by veterinarians but there have been incidents over the last few years that highlight the fact that once animals leave NZ we

AT RISK: Livestock broker Peter Walsh says the likely banning of live cattle export trade is a real worry for the livestock industry.

Photo: Annette Scott

have very limited ability to ensure their wellbeing when they reach their destination.

“That’s something that’s not acceptable to me and I know it’s not acceptable to a large number of New Zealanders.”

Animal welfare standards are a growing focus of consumers around the world, he said.

“We need to ensure we have the highest level of animal welfare standards.

“Our economic wellbeing depends on it.

“Now is the time for us to

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demonstrate NZ’s leadership and commitment to upholding the highest standards of animal welfare.”

O’Connor has directed Primary Industries Ministry officials to review all possible options.

The options presented in the review range from tightening up the existing standards to absolute or conditional prohibition on some or all parts of the trade.

He expects the matter will go to Cabinet’s economic development committee for consideration later next month.

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News

16 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – June 17, 2019

Rabobank ponders bigger loan book Nigel Stirling nigel.g.stirling@gmail.com RABOBANK is talking to its Dutch parent about increased backing for its local operation as it ponders the opportunity for a bigger share of the rural lending market if new capital rules lead the Australianowned banks to pull back.

The Reserve Bank is talking to the trading banks about doubling the minimum amount of capital they must hold against their loans so they can withstand losses from a one-in-200 year economic crisis.

That led the country’s largest rural lender ANZ in April to warn its farming clients the costs to the banks of the proposals could be passed on in higher interest rates.

It urged them to reduce debt and reassess any future borrowing.

The Australian-owned banks also face a potential doublewhammy with the internal model approach for calculating the amount of capital they hold against their loans also up for review.

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them to lend with less capital than their smaller rivals in the past.

Reserve Bank governor Adrian Orr last month hit back at suggestions from the Australianowned banks that the changes could force them to tighten up on rural lending.

Once we know what the rules are then we are not averse to putting more capital in if we need to.

Todd Charteris Rabobank He said if they did then it would have nothing to do with proposed hikes in capital minimums and more to do with a change in their appetite for rural debt amid dairy prices past their peak and rising farm costs.

Orr said New Zealand banking

www.crmcphail.co.nz

EMAIL

is a competitive market and urged farmers to shop around.

Rabobank NZ’s chief executive Todd Charteris said the bank has no intention of pulling back lending.

“It is an important market for us and our ambition will not change regardless of what the regulator wants.”

Since its entry into the NZ market in the 1990s Rabobank has built its loan book to $12 billion or about 17% of the total rural lending market.

That was funded entirely through profits retained from the NZ operation.

However, the potential need for significantly more capital has led it to sound out its Dutch parent for a top-up.

“We have had discussions around the board table, which has shareholder representation on it, and the shareholder is absolutely committed to this market.

“Once we know what the rules are then we are not averse to putting more capital in if we need to, given our ambition in this market.”

enquiries@crmcphail.co.nz

READY: Rabobank has spoken to its parent company about putting more money into New Zealand farming, chief executive Todd Charteris says.

However, Rabobank is not interested in taking on the dud loans of other banks.

“We think we are 16-17% market share and we have ambition to grow that but we want to grow that in a sustainable way.

“It has got to sit within our risk appetite.”

Charteris said while the Reserve Bank’s proposals are designed to make the banking system safer they could undermine its stability if taken too far.

“NZ enjoys a really well banked and stable sector here and to be honest to disrupt that too much could have a real impact.”

Orr has rejected suggestions the proposals could spark a run on the value of farms.

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The proposal • Reserve Bank wants to increase capital held by big four banks from 8% to 16% within five years.

• All other banks will need to hold capital equal to 15% of all loans over same period.

• Banks say rural loans already lowest-returning because they have to hold comparatively more capital per dollar lent compared to residential mortgages, which are seen as less risky collateral.

• Australian-owned banks say further increases could lead shareholders to reassess their commitment to the New Zealand market and rural lending in particular.

News

farmersweekly.co.nz – June 17, 2019

Decisions made.

Made mobile.

17

DEFIANT: ANZ rural lending head Mark Hiddleston challenges the Reserve Bank’s call for trading banks to hold more capital to back their loans.

ANZ’s rural manager questions capital call IT IS a case of when rather than if banks will have to increase their capital reserves against loans and rural customers will end up paying, ANZ commercial and agricultural manager Mark Hiddleston says.

Late last year the Reserve Bank said it wants banks to increase the amount of capital held as security against loans, with weighted capital increases likely to be greater for riskier parts of banks’ lending.

That prompted fears the dairy and construction sectors in particular could wear the brunt of the higher capital requirements through higher interest rates.

Hiddleston is hoping for the best but preparing for the worst.

“In the case of ANZ the changes would require an additional $8 billion of capital to be retained.”

Having to increase the capital could result in downward pressure on the amount of lending available to the rural sector, possibly by as much as $10b, coming at a time when the need for agribusiness investment has never been greater.

ANZ’s Greener Pastures report in 2012 predicted a shortfall of capital in New Zealand of $200b between then and 2050 for this country to take full advantage of emerging opportunities.

“This is not about price of capital as much as availability of capital.”

Hiddleston challenged Reserve Bank concerns over risk exposure in the rural sector contributing to any need for greater capital retentions.

“We had one receivership in three years through the dairy downturn when 80% of our clients were in the red.”

ANZ is naturally fully supportive of a sound secure banking system.

“But you have to ask ‘how strong is strong enough?’. This means the system can withstand a one-in-200 year shock. That is only a 0.5% risk.”

He sees some irony in increasing capital reserves and lowering lending amounts.

But you have to ask ‘how strong is strong enough?’. This means the system can withstand a one-in-200 year shock. That is a 0.5% risk.

Mark Hiddleston ANZ “We see New York and Singapore based hedge funds offering to fill that finance gap and you have to question who our customers could be getting into bed with.

“When the next financial shock comes along, if those funds behave the way many did in the last global financial crisis when customers were called on to repay loans, the pressure on the system is greater, not less.

“It goes against what is trying to be achieved.”

He is confident that despite any perceived risks, agri-sector lending is already secure.

“We stress-test our loan book, modelling all customers on a 7.25% loan rate and there are many on rates significantly less than that.”

Meantime, ANZ has moved to reduce its agricultural lending exposure in recent years, with

a market share in March of 28.3%, significantly down from a historical high of 36% several years ago.

Hiddleston said the bank has more than 70% of its rural customers making principal repayments but in some cases the amounts are small.

In its last Financial Stability Report the Reserve Bank expressed concern over the fact 35% of dairy debt is to farms holding $35 a kilo milksolids or greater debt.

That potentially puts some lower-valued, highly indebted farms in negative equity.

“This is where the long road is there to try and bring financial strength to those operations.”

These operators are going to also require a somewhat different approach than less indebted clients. One bad year in three easily leaves the indebted operators re-exposed.

“They are going to need more capital but who will provide it? It could be second tier financiers.”

Often that debt is on poorer quality or located dairy land and the spread between good to poor is 15-20% variance in value, if it even manages to sell.

“We all have our problem clients.

“Do they want to stay in the industry and how will they do it and this is in a favourable low interest rate environment too.

We have been in an environment where good farmers have been subsidising poor ones and maybe that will not continue.”

He welcomes the capital transfer to Westland dairy shareholders with the proposed sale offer from Yili providing a positive outcome for indebted farmers there.

For those owing less substantial amounts it is a case of keeping the rigour and discipline there to keep the repayments up.

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News

18 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – June 17, 2019

Fun and business at Fieldays PRIME Minister Jacinda Ardern opened the 51st edition of National Fieldays at Mystery Creek last week by highlighting the strength of New Zealand’s primary industries and their importance to the people of New Zealand.

Following up on the wellbeing Budget Ardern said the health and wellbeing of rural communities is at the heart of recently announced funding initiatives.

National Fieldays Society chief executive Peter Nation said “We, as an event, take our role

very seriously in staging a platform that educates and supports those within the industry while attracting opportunities for trade with international visitors.”

More than 26,360 visitors attended on Wednesday and big numbers were expected for the rest of the week.

And as well as looking at the serious side of agricultural issues and business the Fieldays, as always, gave a chance for people to have some fun.

PULLING POWER: The tractor pull at Fieldays is a traditional event.

LEARNING: Courtney Butler of Hamilton gets some tips on performing CPR at the critical care stand in the Health Hub.

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News

farmersweekly.co.nz – June 17, 2019

Decisions made.

Made safe.

19

BEHAVE: Casey Church, of Hansen Products, is photobombed by a workmate.

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STRAIGHT: Jared Nicholson lines up his wires at the fencing competition.

News

20 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – June 17, 2019

Passion and precision celebrated THE winner of the New Zealand Ewe Hogget Competition will be unveiled later this month.

The national competition identifies the top farmers and rewards excellence in selecting flock replacements likely to be most productive and profitable over their lifetime.

Sheep Breeders’ Association general manager Greg Burgess said a shared passion for the sheep industry keeps the competition going.

“It’s the only true commercial sheep competition for NZ farmers.

“As a rule the judges look at around 150,000 ewe hoggets throughout the North and South Islands so they get a good look at stock.”

The annual event boasting $20,000 in prizes is a chance for farmers to benchmark their flocks against others at local and national levels.

It is also a chance to compare different farming systems and

learn from other competitors as well as the judging panel.

Burgess said growth in the competition is seasonal but it tends to attract 250 to 300 flocks each year.

“This year we’ve had quite a few entries from the Blenheim-Nelson area compared to previous years.

“Farmer interest changes year-to-year but you can say the southern area of the South Island will always be quite strong.”

However, last year North Canterbury farming couple Richard and Mez Power won the top accolade.

Their objective is to breed robust, sound sheep that can handle the dry North Canterbury summers and respond by getting in lamb early to wean the heavy lambs before the schedule drops and the next dry sets in.

In their first competition in 2017 the Powers finished runner-up by half a point.

Burgess said the most common trend he sees in the competition

This competition is a great opportunity for sheep farmers to learn.

Greg Burgess Sheep Breeders’ Association is an eagerness by competitors to re-enter.

“It’s really quite encouraging.

“This competition is a great opportunity for sheep farmers to learn.”

Judging is based on flock performance. There are six sections: fine wools, Romney, Perendale, Coopworth, crossbred and composite. Hogget mating is not compulsory.

Points are awarded on production (50%), phenotype (20%), breeding objectives (15%) and wool quality (15%).

BOOMERANGS: Many farmers enter the Ewe Hogget Competition repeatedly because it is a great learning opportunity.

Farmers must have 90% of replacement ewe hoggets with a minimum of 300 wintered.

Judging has taken place over the past couple of months before the national breed winners, special awards and overall winner are named at Chateau on the

Park, in Christchurch, on June 26.

The competition concludes later in the year with a field day on the national winner’s property.

Farmers Weekly is the official media partner of the NZ Ewe Hogget Competition.

Country Life presenter takes award agrievents

LONG time Country Life presenter Susan Murray is this year’s Ravensdown Agricultural Communicator of the Year.

It is the award’s 33rd year.

There were six nominees.

Murray thinks this year is the 31st time she has covered National Fieldays and it will be her last.

She recently resigned from Radio New Zealand and is looking forward to spending more time with her husband, a Zespri manager, in Mt Maunganui.

Tuesday 30/07/2019 Women’s Enviro Evening – Connecting, Inspiring and Empowering Speakers: Penny Clark-Hall, Kate Scott, Sinead Leahy and Janet Gregory Time: 6.30-9.30pm Venue: Clinton Town Hall, Clinton Free event – Supper – Raffles – Cash bar RSVP: By Friday 26 July to Libby, Clutha Development - libby@ cluthanz.com AWDT Understanding Your Farming Business 3 full-day workshops and an evening graduation ceremony run over four months. Equips and supports women involved in sheep and beef farming to lift business performance.

Registrations for 2019 programmes are now open, visit the website for more information and to register.

Locations and dates (3 modules & graduation): Takaka: 21 Aug, 18 Sep, 16 Oct & 13 Nov Kaikoura: 28 Aug, 25 Sep, 23 Oct & 20 Nov Pukehou, Hawke’s Bay: 4 Sep, 2 Oct, 30 Oct & 27 Nov Masterton: 5 Sep, 3 Oct, 31 Oct & 28 Nov Clinton: 11 Sep, 9 Oct, 6 Nov & 4 Dec Lawrence: 12 Sep, 10 Oct, 7 Nov & 5 Dec Website: To register visit www.awdt.org.nz/uyfb/ Contact: keri@awdt.org.nz or 06 375 8180 for more information

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And she wants to give time to their orchard and keeping

Murray is a life member of the Guild of Agricultural Journalists and Communicators, was secretary-treasurer for about WINNER: 10 years, has won many Susan Murray is the national journalism awards and won the International Agricultural Communicator Federation of Agricultural Journalists Star Prize for of the Year. broadcast journalism several years ago.

The award, run by the guild, recognises excellence in communicating agricultural issues, events her large garden under and information. control.

THE increasing public profile of farming and misconceptions about it are one of the biggest challenges farm leaders face, retiring Federated Farmers Auckland president Andrew Maclean says.

“Farmers are up against well-funded organisations and corporates with sophisticated communication machines.

“Communication is not currently a strength of farmers,” Maclean said.

There are, however, moves afoot to change the profile of farmers and of the industry.

“We need to begin by bringing young and energetic people into farmer organisations.

“I have seen great examples of people getting involved in leadership training and

it proved to be a turning point for them. They begin to understand that it is only through politics and the democratic process that we are able to challenge issues and so champion the way forward,” Maclean said.

“We have good reason to be optimistic, we have to work at bringing people through the ranks and we have to invest in people.

“If we don’t get diversity in leadership then governance won’t be able to make any changes,” he said.

Farming, with annual growth cycles, presents a specific challenge because it can’t change quickly, like a manufacturing plant can.

“We know what we are good at and have some of the finest farming systems in the world.

“We have to look at improving efficiency. We,

CHANGE: Andrew Maclean, left, has stepped down as Federated Farmers Auckland president and Alan Cole has just taken up the reigns.

however, have to be careful that we think radical changes is the solution,” he said.

Maclean believes the Government is beginning to see that behind 75% of the country’s exports are thousands of rural communities that support farmers and farm employees and they need support that might be different to urban communities.

Vice-president Alan Cole replaces Maclean.

He comes from a dairy background but now finishes beef on his Waiau Pa farm.

“One of the biggest challenges Auckland farmers will face in the near future

is new water regulation the Government will announce in July and the subsequent implementation by the council,” Cole said.

Though Auckland is better off than many other areas, the region and his farm have had some of the driest first months of a year he can remember, which presents a grazing challenge.

“In future we are also going to have to look at organisation membership and succession.

“Our executive is old and we have to encourage younger members onto the executive.

It’s a countrywide issue,” Cole said.

Decisions Safety is pretty made. simple, really Made easy.

News

farmersweekly.co.nz – June 17, 2019

21

This profile is part of a seven-part series from WorkSafe sharing the health and safety approaches taken by the grand finalists of the 2019 FMG Young Farmer of the Year competition. We will be sharing a profile and short video about each of the finalists and how they incorporate health and safety into their work, from a dairy farm manager to a veterinarian.

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WORTH MONEY: Safe and healthy staff add value to a business, James Robertson says.

Before, there was a sense that you hadn’t done enough work if you didn’t get home exhausted.

Robertson is now a member of Auckland City Young Farmers and still enjoys getting home to help his parents, who now farm some lease blocks near Hamilton.

“After Dad’s accident we started looking at health and safety differently.

“We have a hazard register and we always talk to our contractors before they come on-farm, even if they know the place well, to talk about any risks or obstructions. You need to let people know. Just because you are aware of a risk doesn’t mean everyone else is.

“Time had been a factor in the accident so we also started to recognise the dangers of fatigue.

“Before, there was a sense that you hadn’t done enough work if

you didn’t get home exhausted.

“But we started focusing instead on doing things right and doing things well, without putting ourselves at risk.

“I think a lot of farmers cover off processes and procedures and PPE but forget about managing fatigue.”

Vehicle safety is also a key focus for Robertson.

“While I was a student I spent two summers working for a contractor in King Country and that really instilled in me the importance of choosing the right vehicle for the job and the terrain and pre-driving inspection – things like checking the tread on tyres. I’m really big on that.

“It’s pretty simple really.

“Think about the job you are going to do, think about the risks and how you will manage them, make sure you have the right gear and that it’s in good condition – and manage your fatigue.

“Good health and safety doesn’t take a lot of time but, in the long run, healthy and safe staff add value to your business.”

RAV-HE17JUN-FW03

FMG Young Farmer of the Year grand finalist James Robertson gained first-hand experience of the impact an injury can have on a farm business when his father had an accident.

“He was kicked by a cow and broke his thumb,” Robertson, who grew up on his family’s dairy farm near Mystery Creek, said.

“I think I’d been a bit oblivious to health and safety as a young person but I really saw the implications an injury has on the business.

“He wasn’t able to work in the cattle shed for a few weeks.

“Having a key person not able to do that put a lot of pressure on everyone else.”

Robertson, who won the 2019 FMG Young Farmer northern regional final, has an agri-commerce degree from Massey University in Palmerston North. He was very active in the university’s Young Farmers organisation and says helping organise health and safety for club events gave him a new perspective.

“It wasn’t just if we were going on-farm for a practical farming day but also for things like social events. It made me very aware of the importance of identifying the risks and planning how to mitigate them,” he says.

“That’s a huge thing.

“We were a big group. We did not want anyone to get hurt and there are implications for your organisation if someone does get hurt. There’s the human perspective and the business perspective of health and safety.

That really raised my awareness that it’s about a lot more than chainsaws and motorbikes.”

Going on to join Fonterra’s business graduate programme, which involves six-month stints working in different parts of the business, has further reinforced that awareness.

“On my first day at Fonterra we had a presentation on health and safety as part of our induction. And they provided real life examples of what can happen.

“There are lots of different aspects to what we do – from our farmers to tanker drivers to those turning our dairy into world-class products.

“Exposure to different parts of the business has really opened my eyes to how we need an embedded health and safety culture – whether you are at a desk, in a factory, on the farm or somewhere in between.”

Newsmaker

22 FARMERS WEEKLY – farmersweekly.co.nz – June 17, 2019

Wool stalwart, 86, still bulldozing Hawke’s Bay farmer and passionate agriculture advocate Bay de Lautour’s love for the land began when he was a youngster hiding in the scrub from the Japanese during the war.

He talked to Annette Scott about his lifetime of farming and his unfailing dedication to wool.

B

AY de Lautour is a man of the land and at 86 as passionate now about farming as he was when a child growing up on his parents’ farm at Wairoa during World War II. For almost 70 years he has contributed unselfishly to agriculture for the betterment of New Zealand farming.

He has developed and farmed his own land and had significant involvement in off-farm advocacy and industry governance.

His involvement was such he got his pilot’s licence and bought a plane so he had time to farm and pursue his off-farm agricultural activities.

His passion for farming and advocacy for the betterment of agriculture stems back to his childhood.

“During the war my father was overseas and I spent a fair bit of time in the bush on the farm where the Japanese could not get hold of us.

“It was a scrub farm and it was from this that I decided I wanted to go into farm development,” de Lautour said.

After a couple of years shepherding in the Gisborne area de Lautour found a farm in Central Hawke’s Bay he wanted to make his own.

“Everybody said I couldn’t afford it and would never be able to buy it.”

Determined to prove the knockers wrong he forged on with his plan.

“I did have a job getting the money but in the end I proved them I wrong. I got the farm.”

The property filled his desire to develop and improve land for farming, something he planned in his days hiding in the bush as a youngster.

When he took over the hill country farm in 1958 it was in five paddocks running 2800 stock units.

In 1984 when de Lautour moved off the property and elder son Hamish took over the farming, it was in 100 paddocks and running 20,000 stock units.

“I crushed shrub and resowed paddocks and got interested in sheep recording.”

Despite the low-fertility soils with unreliable summer rainfall, persistent westerly winds and usually some winter snow, it all came together over time.

De Lautour started recording his Te Whangai Romney Stud in 1970, one of the early starters in sheep recording.

The breeding philosophy is very clear.

PRACTICAL: Bay de Lautour is 86 but dreams of one day flying again, something he took up to save time for his own farming while he traversed the country pursuing off-farm agricultural activities.

“We believe that for commercial farmers to run an ever increasingly more efficient and profitable business they must focus on continuously getting more for less – more production from less input.”

To make genetic progress selection must take place in an environment that puts pressure on the traits to be improved.

“Giraffe would never have evolved with long necks if there wasn’t a shortage of low-hanging food,” he says.

In 1970 the immediate focus for Te Whangai was to lift fertility and develop an easy-care animal.

By the early 1990s the average number of lambs born to the recorded ewes was over 190% as only twinning ewes were kept.

Wool has always been a special interest and an important part of breeding and productivity for de Lautour.

“I was brought up to believe that we should be spending time outside farming activities too and furthering the country’s economy.

“My father was a great believer in contributing where he could.”

With his keen interest in wool and involvement in Federated Farmers, de Lautour followed his passion.

“I was very supportive of the Wool Board’s corporation scheme, Acquisition, and my involvement in the wool industry rose in the failure of that corporation to get off the ground.”

He was instrumental in the establishment of the Primary Wool Co-operative (PWC), formed 44 years ago by a group of farmers to increase the returns for wool growers.

The co-operative was originally known as East Coast Wool Co-operative and was formed to support the Dannevirke wool spinning plant, which de Lautour was also instrumental in establishing to improve NZ’s supply chain in scouring, spinning and exporting.

PWC worked hard to change the wool model to increase returns for its members.

I spent a fair bit of time in the bush on the farm where the Japanese could not get hold of us.

Over the years PWC continued to track successes and strategically move into other parts of the wool industry doing well for its members returning almost $1 million in rebates and dividends and 340,000 bonus shares on the original $190,000 invested.

In 2010 the Just Shorn brand was strategically launched by what is now known as CP Wool, a 50:50 joint venture between PWC and Ashburton-based Carrfields Group, to stimulate demand for wool carpet in the United States.

Just Shorn was successfully launched in Australia in 2014 through the Carpet One franchise while a more recent launch in NZ through the Harrisons Carpet One franchise has already exceeded expectations.

A board member for 44 years, 20 of which he spent as chairman, de

Lautour stepped aside from PWC’s leadership last month.

In a moving account of the evolution of PWC he recalled how the 100% farmer-owned PWC had grown from 400 farmer shareholders each contributing $400 to now being NZ’s only farmer-owned wool co-operative with 1409 shareholders.

With significant investment interests in PWC he will remain on the board for a bit yet.

“I will carry on as long as I can with the co-op – until the loans are paid.”

Extra-curricular farming activities have not been restricted to the sheep sector with de Lautour also actively involved in the deer industry as founding director of East Coast Venison in 1982 and also serving as chairman of the NZ Game Industry Board.

He acknowledges not everything he has supported has succeeded quite like PWC but he’s soldiered on for the betterment of NZ farmers.

De Lautour was made a member of the NZ Order of Merit in 2000 for his services to farming and dedication to NZ’s wool growers and the wider industry.

In 2016 he was recognised with the Laurie Dowling Memorial Award for his outstanding contribution to agriculture in Hawke’s Bay at the region’s primary sector awards.

Still keeping a watchful eye on goings-on in the wider farming sector de Lautour is concerned about losing good productive sheep country to forestry.

“I think we have really big worries with this conversion of

good sheep hill country to forestry.

“If we keep going this way it will be the end of sheep in NZ. And the future of strong wool?

“I’m optimistic wool has every reason to make a resurgence.

“We need to keep striving to find ways to add value to wool and there’s still plenty of opportunity do that.

“Wool is a big part of sheep farming income.

“I’m confident it will double and the co-op is confident and that’s reflected in its partnership with NZ Yarn in the proposed manufacture of a new hemp-wool fibre set for next year.”

Now living on a lifestyle property filling in his days enjoying family, including his grandchildren and soon to be 14 great grandchildren, he likes to keep his hand in farming by spending time helping on younger son William’s property.

He says he couldn’t have done what he has without Shona, his wife of 62 years.

“She’s been such wonderful support all the way.”

He’s never had and doesn’t think he ever will want to have time for golf or bowls.

“I like to be on the farm where I look after the weed control, spraying and chopping down thistles.”

Sadly, due to a health hiccup four years ago his pilot’s licence lapsed so flying is not a pastime in his so far four years of retirement.

“I dream about getting my flying licence again one day but I still drive the bulldozer and do a bit of land development.

“Eventually I’ll exit this land with my boots on,” he said.

New thinking

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – June 17, 2019

23

BRAINS: Iris Data Science managing director Greg Peyroux, left, and director and data scientist Benoit Auvray are adapting artificial intelligence for agricultural use.

Sheep focus of facial recognition Artificial intelligence or making computers perform tasks that normally require human intelligence, sounds like something out of a science fiction novel.

But a small Dunedin company is adapting the computer science into practical applications for agriculture. Neal Wallace visited Iris Data Science.

I

DENTIFYING a ewe to be culled or getting an accurate measure of pasture quality could be as easy as taking a picture.

Former AgResearch employees Greg Peyroux and Benoit Auvray from Iris Data Science in Dunedin are looking at agricultural applications for artificial intelligence (AI) using visual imaging.

And they have found a few.

Initial work is on using computers to accurately analyse images to recognise and identify the faces of individual sheep and the pasture composition of quality species and weeds.

There are also plans for an application to optimise fertiliser effectiveness but exactly what and how is still in the design phase.

Auvray says to develop a practical use for AI means initially training computers to recognise individual sheep, pasture species or weeds then transfer that information into a format farmers can use.

Director and data scientist Auvray says facial recognition for sheep could allow a picture of a ewe having birthing problems to be taken in a paddock on a smartphone.

The image can be transferred

to a computer and through facial recognition she can be identified and culled the next time she is through a drafting race.

Iris is also developing a computer-generated condition score for pasture quality and another system monitoring weed infestation to let farmers respond before it becomes a widespread problem.

Pasture images are collected from a GoPro camera mounted on a quad bike or a drone, which the computer then analyses to determine pasture quality, pasture species or degree of weed infestation.

Auvray says the pasture condition score work is in conjunction with farmers but at this stage it measures only the amount of clover and other pasture species and not the volume of drymatter, something requiring further research.

Feedback from dairy farmers indicates a desire and a need for pasture quality measurement, evident by how stock avoid grazing parts of a paddock.

“Dairy farmers really want to know more than just how much drymatter is in the paddocks,” he says.

Identifying a looming weed problem could allow the precision

application of a herbicide before the issue becomes widespread.

Peyroux says it is early days for the sheep facial recognition research and he hopes to have a prototype trial on a farm by the end of the year.

Dairy farmers really want to know more than just how much drymatter is in the paddocks.

Benoit Auvray Iris Data Science The technology could replace ear tags, which can be lost, make it easier to single out individuals or, worked in with an automated drafting system, to split off groups according to age or sex.

The technology is similar to that being rolled out for use among humans in Europe, China and the United States, which, in some cases, has caused consternation with civil liberty groups.

Police in England and Wales are using automated facial recognition to scan crowds for

suspected criminals while San Francisco city officials have banned police and other agencies from using the technology.

Auvray says images of the faces of individual sheep, pasture plants and weeds showing a variety of angles are fed into a computer.

That trains the computer to automatically identify specific and relevant features but as the computer learns the process it narrows the key features to focus on and in future the volume of initial data required will diminish.

The facial data can be collected in sheep yards by a computer the size of a cigarette packet, called an Edge Device.

There are still some questions to be answered, such as whether the computer can continue to identify an individual sheep as it ages.

Peyroux says as well as replacing electronic identification and plastic ear tags, facial recognition technology can be used to identify stolen stock.

He hopes it will work out cheaper than tagging every sheep.

Iris is also looking to use imagery technology to measure body condition in sheep based on changes in the body condition and weight gain over a 12-month period.

Work is still under way

developing that technology, but the process will track changes in weight and refer that to the body score the previous year to come up with a new body score measure.

In the US researchers are looking at facial recognition in cattle and in China similar work is under way in pigs but Peyroux believes his company is the first to try it for sheep.

Peyroux and Auvray were both employed at AgResearch Invermay, Peyroux as a product development manager and Auvray as a statistician.

When AgResearch announced plans to down-size Invermay and shift most of the scientists to Lincoln they opted to stay in Dunedin.

Peyroux established Iris in 2013 and Auvray worked at the University of Otago in the mathematics and statistics department and for Beef + Lamb NZ Genetics before joining the fledgling business.

MORE:

Greg Peyroux is keen to hear from farmers with feedback or ideas on the projects or who might want to be involved in some of the development work: www.irisdata.co.nz

Opinion

24 FARMERS WEEKLY – farmersweekly.co.nz – June 17, 2019

EDITORIAL There’s just no let-up

F

IELDAYS is done for another year with participants reporting a positive vibe though there’s always an element of the holiday atmosphere about the event as people slip the leash for a day or two off the farm.

Appearances can deceive and recent surveys show rural people are not particularly happy or confident despite the generally good farmgate returns for primary products. They have reason for wariness given pending compliance and environmental pressures and the rising cost of inputs while banks are getting tougher on lending.

As usual there was a parade of politicians at Fieldays and let’s hope that as well as telling farmers’ futures for them they have listened and have a good handle on what rural folk are thinking and doing. And it must be admitted it’s not all doom and gloom. Returns look like being steady or even retreating slightly this year but then the upward climb will be resumed, the Ministry for Primary Industries situation and outlook report tells us. Trying to predict anything more than a year or so out is fraught with danger given the vagaries of predicting the way international politics will go.

But despite the international uncertainties our products are in good demand and fetching good prices. The greatest danger would come from a fall in retail spending in our big markets, which is a good argument for targeting the rich people in those markets.

According to KPMG the trend is now emerging where people are looking for healthy food to ensure their long-term well being. That’s a good sign for us because if we convince people they should eat our food once then they can eat it for life.

All these factors show the value of having good and binding relationships with trading partners and the worth of freetrade agreements. And though we’re doing everything right we can’t let up on the hard sell. In a world of constant and rapid change, not to mention fickle consumers attitudes and tastes, we have to keep banging the drum.

So let’s hope all those international visitors at Fieldays had such a good time they’re now zooming round the world acting as our ambassadors.

Stephen Bell

LETTERS

Why do vegans lecture us?

I WAS pleased Steve Wyn-Harris called out James Cameron and Suzy Amis-Cameron in the Farmers’ Weekly.

I just shook my head a couple of weeks ago to see them lecturing everyone.

I assumed they wanted to ingratiate themselves with our lords and masters in Wellington, possibly for some gain or other ... buy a few hundred more hectares, that sort of stuff. I didn’t know how one could say anything.

We do have a lot of these travellers in private jets, with their visions of the anointed, lecturing us from on high, like the Norwegian billionaire who is funding the vegan eat-lancet-rubbish, who zooms around in a private jet and wants us all to eat nuts and seeds and that American politician who flies around

in private jets, lecturing on climate change.

Well done for calling out such folks.

It really does seem the vegan groups are very active in promoting their agenda.

We would all wish them to eat as they choose and good on them. Please eat as you wish.

However, they do seem to be passionate in determining policy. Folks need to be aware of this. The cereal manufacturers are also very active behind the scenes, it seems. It ain’t all just by chance. Hill farmers need to be aware of this.

New Zealand needs to remain the land of the free.

Fred Jones Bay of Plenty

on James Cameron with his double standard comment.

Being hypocritical is entirely normal for these people, get over it.

What needed to be pointed out, if Cameron believes the world can be saved only by the population living on rolled oats, curly kale and turnips or whatever other vile vegan vittles necessary, he should set out to convince them.

Farmers will grow whatever the population wants if there is a bob in it.

Tell Cameron to stop wasting his time lecturing farmers on what consumers should eat. Go convince consumers if he has the stomach (pun intended) for it.

Mervyn Cave Manapouri

Vile vittles STEVE Wyn-Harris in From the Ridge misses the target

Bang some heads I AGREE with John O’Connor’s

comments on Westland sale to Yili “Farmers are sceptical that this is a great deal in the long term although there is no denying it will be very good for them in the short term”.

The $3.41 a share wouldn’t make much of a dent in the average farm debt and then after 10 years what happens?

The centre section of the Coast will survive but those at either end are at the mercy of offshore ownership decisionmakers who could decide it’s too expensive to cart milk from either end.

Someone needs to bang the heads together of Fonterra and Westland boards and come up with a co-op ownership model that will work.

And don’t let them out of the boardroom until they have.

Stu Weir Fonterra supplier, Timaru

Letterof theWeek EDITOR Bryan Gibson 06 323 1519 bryan.gibson@globalhq.co.nz EDITORIAL Stephen Bell 06 323 0769 editorial@globalhq.co.nz Neal Wallace 03 474 9240 neal.wallace@globalhq.co.nz Colin Williscroft 06 323 1561 colin.williscroft@globalhq.co.nz Annette Scott 03 308 4001 annette.scott@globalhq.co.nz Hugh Stringleman 09 432 8594 hugh.stringleman@globalhq.co.nz Alan Williams 03 359 3511 alan.williams@globalhq.co.nz Richard Rennie 07 552 6176 richard.rennie@globalhq.co.nz Nigel Stirling 021 136 5570 nigel.g.stirling@gmail.com PUBLISHER Dean Williamson 027 323 9407 dean.williamson@globalhq.co.nz

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Opinion

FARMERS WEEKLY – farmersweekly.co.nz – June 17, 2019

25

Tree returns better than stock The

Pulpit

Denis Hocking

W

HILE there seem to be numerous farmers rising up against the intrusion of more forestry onto our sheep and beef country, there are some of us who feel they risk throwing a very healthy baby out with the bath water.

So, not for the first time, I’ll stick my head above the parapets and say I think there is a strong case for the Billion Trees and more on this country.

But I also believe it needs to be done with care and sensible planning and that depends on the actions, including sale habits, of existing land owners.

First, I will agree with the majority in saying I am not a fan of the permanent, boundaryto-boundary, carbon-sink forests.

However, I do believe there is space for such permanent sinks on land unsuited for commercial use, be it forestry or pastoral, and for environmental or economic limitations.

But this will seldom, if ever, be a whole property. Rather, it will be the most fragile land forms distributed through our landscapes.

I want to focus on production forestry where trees can still provide environmental services such as carbon sequestration, improved water quality and soil conservation along with a valuable product called wood.

Unfortunately, this carbon sink versus production forest distinction is not clearly made in the Government policy and in the recent Parliamentary Commissioner for the Environment Simon Upton’s report there was hardly a mention of the wood production role of forests.

Yet production forestry is a better tool than permanent sinks for reducing net greenhouse gas emissions.

In its fourth assessment the Intergovernmental Panel on Climate Change said: “A sustainable forest management strategy aimed at maintaining or increasing forest carbon stocks while producing an annual, sustained yield of timber, fibre

NOT ME: Denis Hocking is not a fan of permanent, boundary-to-boundary carbon-sink forests.

WAY TO GO: Forestry is a much better export earner than sheep or beef farming, farm forester Denis Hocking says.

or energy from the forest will generate the largest sustained (carbon) mitigation effect.”

And if we are looking primarily at production forestry then we farm foresters would argue everyone can win if it is integrated with existing land uses.

Forestry is a better, much better earner of export dollars than sheep and beef farming.

According to Statistics New Zealand in the period 2011-15 our 1.7 million hectares of production forestry earned the country, on

average, $4.747 billion a year or $2819 a hectare a year.

Our 5.4m hectares of sheep and beef pasture land earned, on average, $7.033b from meat, wool and hides or $1470 a hectare a year. If you include the 2.7m hectares of tussock and danthonia land, forestry earns three times the export earnings of sheep and beef and that’s with minimal value added to most of our wood.

Not all farm woodlot harvests come out sunny side up but the recent Farm Forestry Association conference revealed many satisfied growers reporting forestry returns four to five times sheep and beef returns on classes five, six and seven land.

I have achieved $40,000 to $50,000 a hectare for 28-year-old trees on classes six and seven sand dunes but that looks pretty meek beside $60,000 to $70,000 a hectare returns in Bay of Plenty.

Admittedly, on more difficult hauler country and where access is a problem you do need scale.

Put these first two points together and I suggest forestry doesn’t necessarily deserve the poorer land, it’s just that it doesn’t need the better land, so that’s what it gets.

People are, understandably, worried about further depopulation of rural areas with the rise of forestry, but the main driver of depopulation in recent times has been the amalgamation

of farms and the rise of rural commuters.

We don’t need to run our forestry according to the corporate model.

In my experience well managed, pruned and thinned woodlots (my recommendation because they provide more options at harvest) seem to be more labour-intensive than sheep and beef.

If you want to keep the forestry corporates and carbon foresters at bay, get out and plant trees.

I have employed people only because of the tree work and forestry has paid the wages.

Today you can use Government subsidies and/or carbon to pay the wages.

Perhaps all sheep and beef trainees should learn how to use pruning loppers, planting spades and chainsaws to bolster employment opportunities.

If a monoculture of radiata pine bores or even repels you, rest assured there are numerous other production species with proven performance and excellent timbers that farm foresters are growing around the country.

There is certainly demand for alternative timbers though the necessary processing and marketing infrastructure is underdeveloped.

I think we could justify some Government assistance here – a small version of radiata’s support in the 1950s and 1960s.

My final suggestion is that if you want to keep the forestry corporates and carbon foresters at bay, get out and plant trees.

They want bare land not a mass of woodlots.

My property with 40 different woodlots of different species, age and silviculture, might be more a mess of woodlots but would certainly scare them away.

So grab the opportunity. It’s never been easier.

Who am I? Denis Hocking is a Bulls farm forester operating on sand country.

Drystock occupy the flats while trees are grown on the sand dunes.

Radiata pine does particularly well on dunes and he also grows stringybark eucalypts, cypresses and blackwoods. He is now into an annual timber harvest.

Your View Got a view on some aspect of farming you would like to get across?

The Pulpit offers readers the chance to have their say. farmers.weekly@globalhq.co.nz Phone 06 323 1519

Opinion

26 FARMERS WEEKLY – farmersweekly.co.nz – June 17, 2019

Funding water storage sensible Alternative View

Alan Emerson

THE good news last week was the Government’s Provincial Growth Fund announcement of almost $40 million in grants towards water storage and sustainability in Hawke’s Bay. That came hard on the heels of $800,000 for Wairarapa to further develop plans for water storage.

Announcing the Wairarapa grant the under-secretary for regional economic development Fletcher Tabuteau said the funding is to unlock environmentally sustainable growth in Wairarapa.

The scheme plans to store 18 million cubic litres of water and I fully support it.

I find much of the debate on water storage bizarre.

We have a natural product in water. It is an internationally scarce resource yet we let the vast majority, 93%, run out to sea.

Whenever anyone suggests we store water we have a vocal army hysterically opposing any initiative.

I found the opposition to the Ruataniwha Dam in Hawke’s Bay verging on rabid yet we allow a company to take 1.179m cubic

metres a year from the Hawke’s Bay aquifers to bottle and sell as flavoured drinks. Where’s the opposition?

In Canterbury there is a strong anti-water storage sentiment yet they allow millions of litres to be bottled and exported.

Aren’t we better off using the water to grow crops in New Zealand?

The Tasman District around Nelson has been in the news recently.

Initially, it was about fires ravaging the tinder dry countryside. Then we were told of a massive drought in the area.

There are water restrictions.

Urban users were rationed along with farms and orchards.

We were then told the possibility of water tankers in the streets is fast approaching.

The message was that the situation for affected businesses could be dire. Under a cease take order the use of water by business would be prohibited.

The reality is that if the Waimea Dam was operating there wouldn’t be a problem and I haven’t heard any opposition to that lately.

The story of the Waimea Dam is interesting. The good news is construction is about to start.

The cost increased to $105m, up from $76m. My view is $105m is a small price to pay for security of water to both the Waimea plains and the city of Nelson.

The increase encouraged the council to reject the plan last

year until a mysterious person or organisation came up with the shortfall.

It was independently estimated the cost of not having the dam was over a billion dollars so investing just 10% of that to future-proof the district was a no-brainer.

That there was any opposition surprised me.

Forest and Bird were opposed.

A fringe organisation, Our Action Station, also vehemently opposed the dam. I couldn’t take them seriously.

We have a natural product in water. It is an internationally scarce resource yet we let the vast majority, 93%, run out to sea.

Someone then suggested using storage ponds rather than the dam. Waimea Irrigators described the idea as ludicrous and I agree.

The Waimea Dam came about as a result of the single-minded focus of local MP Nick Smith.

He has persevered with the project for 17 years and is to be congratulated.

The benefits to the region are huge and largely dispel the myths of the anti-brigade.

The cry in the past has been that

SOLUTION: If the Waimea Dam was operating there wouldn’t be a drought problem in the Nelson area.

dams mean cows and that isn’t the case.

With the dam the area of apples will increase by 960 hectares, grapes by 200ha, berries by 150ha and kiwifruit by 90ha.

I didn’t realise the Waimea Plains is the world’s boysenberry capital with 30% of total production coming from the area.

There are just two local dairy farms.

The economic benefits are compelling with an increase in local GDP for the first two years of $55m and thereafter between $78m and $107m depending on allocation.

A region would be stupid to ignore that.

Additional benefits include security of water for homes in the region, healthy rivers, a robust economy and increased employment.

We were told the Waimea River is unhealthy in the dry and the dam will greatly improve water quality by maintaining flows.

Going to the various websites

is interesting. The local business sector has done its homework and compiled compelling evidence for the project.

My issue is that I found no opposition to the initiative that I could take seriously. With global warming we need water storage and we need it now.

While I congratulate the proponents of the Waimea Dam for a good job well done we need a lot more.

The Hawke’s Bay water grants are a strong step forward as is the Wairarapa water initiative.

Both projects need to be encouraged to a successful conclusion sooner rather than later and the Provincial Growth Fund grants will help with that.

Waimea was lucky with Smith’s perseverance. It would be good to see other areas enjoying similar support.

Your View Alan Emerson is a semi-retired Wairarapa farmer and businessman: dath-emerson@wizbiz.net.nz

Odd season works out well for weather IT HAS certainly been an odd season but not one I’m complaining about.

I wean, draft lambs off to the works, drench, vaccinate, dag, shear, kill bulls and sell 120 rams from late November until Christmas.

So, it’s a busy few weeks.

From November 26 till Christmas Day, when it poured, we had 230mm of rain at a time of year when we might expect hardly any rain but, instead, hot dry northwesters.

Instead, we had thunderstorms every second day.

So, it was a tricky and trying time although a novelty.

As it happened, it turned out to be very useful rain.

Other regions didn’t get this run of wet weather so didn’t go into the New Year soaking wet, as we did.

They have struggled ever since.

After Christmas Day the tap turned off and it’s been slim pickings since with just 210mm for this calendar year until Wednesday. We would usually get twice that. After five months we’ve had less rain than those few weeks in December.

We know autumn droughts well though it’s been a few years since

From the Ridge

Steve Wyn-Harris

INCOME: Steve Wyn-Harris sends a truckload of bulls a week to the works.

we’ve had one. This has been an extended one and is just finished now, which I’ll come to shortly.

But those of us on heavy soils had the benefit of wet soils from those deluges all the way into February and the small falls since just kept things ticking along.

In recent weeks I’ve described it as a green autumn drought but, unusually, with grass.

But not everyone has had the grass, depending on fertiliser history, stocking rates, soil type,

management and, of course, luck in getting those thunderstorms.

My farm grew an enormous amount of feed through December and January – something like 60kg DM/ha/day when it might usually be 15. That was happening as I destocked and reduced demand.

Consequently, I quickly lost feed quality but have had a buffer of rough feed ever since.

Initially the 15-month bulls did well at a time when they might

usually be seeking shade and ruminating while considering whether to wander over to the trough or have another kip.

I realised I’d be able to keep growing them to decent weights into the early part of winter before killing them.

But over the last couple of months the growth rate has slowed as they’ve been asked to help other classes of stock clean up a bit of the rough stuff.

Despite that I’ve been going through the mobs and weighing and sorting them up.

A truckload has been going to the works each week and killing out well.

This is being written on Thursday June 13 and overnight we had our heaviest rainfall for six months – 60mm here and it is still dribbling away. Other parts of

Hawke’s Bay have had just 20mm and others up to 100mm.

Yesterday I thought I might sneak a bit of fertiliser on with a truck given how dry it was on my heavy soils even though it is the middle of June.

I ordered the fertiliser and arranged the truck, doubting the bit of forecast rain would come to much.

This morning the truck was due and I had to cancel it and told the dispatcher it is now unlikely any truck will be going around my farm this winter.

Imagine trying to run a business with people like me as clients?

I’m surprised how wet the ground is considering this rainfall has been steady. I imagine the subsoil is still so hard and dry the water is sitting in and running across the topsoil.

This rain came from the northeast, which is unusual for this time of the year and it is very mild so will grow some grass.

Hopefully other regions have also benefited.

Your View Steve Wyn-Harris is a Central Hawke’s Bay sheep and beef farmer. swyn@xtra.co.nz

Opinion

FARMERS WEEKLY – farmersweekly.co.nz – June 17, 2019

27

Put brakes on foreign forestry The Braided Trail

Keith Woodford

LOCKED: Many forests might never be thinned, pruned or harvested but just abandoned once the carbon credits run out.

New Zealand unit prices 2010-2019 25

R version 3.6.0 (2019-04-26)

20 $NZ Dollars/tonne

NEW Zealand’s Zero Carbon Bill is based on the assumption carbon farming through forestry provides a climate-change solution, at least until the arrival of new technologies that allow a move away from fossil fuels.

In contrast, Environment Commissioner Simon Upton has suggested using forestry for carbon-dioxide offsets is not the away to go.

He contends they should be used only to offset the shorterlived agricultural gases.

The Government does not agree with Upton for reasons that can be readily appreciated.

Without carbon sinks provided by new forests there are no big tools in the kit bag to get anywhere near zero carbon.

Accordingly, carbon farming of forests is going to remain of fundamental importance for as long as the Government is aiming to reduce net emissions of carbon dioxide.

Some of the consequences have not been foreseen.

NZ already relies on forestry to reduce its net emissions of carbon dioxide.

In 2017 forest sequestration of carbon dioxide was assessed at 24 million tonnes compared to gross emissions elsewhere in the economy of around 40m tonnes.

Note, here I am focusing just on carbon dioxide and not the other greenhouse gases.

The starting point for carbon farming is to recognise credits can be claimed for only one rotation of trees, typically about 28 years under NZ conditions for radiata pine or longer for slower-growing natives.

At the end of the first rotation the carbon credits that have been claimed throughout the growth cycle are a liability attached to the land title. That means the land can, in all likelihood, never be used for any other purpose than carbon forestry because the carbon unit liabilities associated with the previous carbon credits would have to be repaid based on their current value.

Whether it is actually worthwhile harvesting the trees at maturity time will depend on the value of sequestered carbon at that time relative to log prices, combined with specific rules relating to repayment of the carbon liability.

Until recently, carbon credits were seen as a nice little cashflow earner during the growth cycle but the main game was still the harvest value of the logs. That is now all changing.

The key reason is the value of carbon in the Emissions Trading Scheme has been increasing rapidly. In 2014 the price was

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well under $5 a tonne. Now it is between $24 and $25 a tonne.

Under legislation there is a carbon price cap of $25 a tonne but there is a very good likelihood of it being removed in the next three years – that is the Government’s plan.

The price of carbon is then likely to rise in line with rising international prices The carbon price could in time go to $100 or even higher.

Even if it goes to only $40 a tonne or even less the forests might never be harvested. The European Union price is already over $40.

Most of NZ’s forests have foreign owners. With policy settings for ownership of forestry land this foreign ownership will increase further. Here is the reason why.

For big foreign entities the notion of having some NZ forests for carbon farming looks very attractive. As part of a balanced portfolio any risks can be managed. In relation to the low returns on equities that can be earned elsewhere in the global

economy the returns look truly stunning.

An overseas entity can buy the land, plant it in trees, receive some Government subsidies then sit back and take the stream of income from carbon credits over the next 28 years then write off the original investment in the same way a spent mine is written off.

If I were advising any such foreign entities that is exactly what I would be saying to them.

Governments have set the rules and now here is the opportunity to play the game.

Of course, it does not require me to tell them that. Their own advisers are telling them and the game is now on.

At the end of the 28 years the land can simply sit there with its unharvested forest, with large carbon liabilities attached to it and providing no further income to either NZ or anyone else. From the investors’ perspective that is fine – it has served its purpose and been a great investment.

The option of harvesting the forest might still be considered

but in the context of a bonus. In any case, given that many new carbon forests, as a cost saving measure, will not be thinned or pruned, the harvest value might well be limited.

From NZ’s perspective this does not seem quite so flash.

In effect, NZ has had an initial benefit from the inward flow of funds to buy the land then has spent the next 28 years paying the foreign owners for the forestry carbon credits to balance off its own emissions elsewhere in the economy.

Future generations of New Zealanders will have some green trees to look at but the land itself can no longer be used for anything because of the crippling carbon liabilities attached to the land title.

In debates about foreign ownership of farmland it is sometimes claimed the foreign owner cannot export the land.

It is still here earning an export income for NZ. But in the case of carbon forestry the foreign owner can effectively capture in one rotation the economic benefits in perpetuity.

Another key insight is the recognition the equilibrium price of carbon needed to ensure emitters change their behaviour is much bigger than the price required to make carbon forestry profitable. For example, at a carbon cost of say $100 a tonne, a motorist buying 1000 litres of petrol a year will still see their costs rising by only about $5 a week and hence make minimal behaviour changes. That same price of carbon could see a liability attached to a hectare of mature forests of between $60,000 and $90,000.

So, what is the solution?

The first step is to remove the Overseas Investment Act exemption that allows foreign

An overseas entity can buy the land, plant it in trees, receive some Government subsidies then sit back and take the stream of income from carbon credits over the next 28 years then write off the original investment in the same way a spent mine is written off. entities an automatic right to buy NZ farms as long as they put it into forestry. There needs to be a brake put on.

The second step is to put limits on the price paid for forestry carbon credits. That would mean keeping a cap on the selling price to the Government by forest owners for carbon credits but could also mean the Government then selling those credits to emitters elsewhere in the economy at a higher price.

That could be a nice Government earner.

The third step would be to pause and take a deep breath.

Let’s quietly work through the hidden consequences and the solutions.

Now, all of this is going to be controversial. Given the conflicting interests of the various parties it can be no other way.

Your View Keith Woodford was Professor of farm management and agribusiness at Lincoln University for 15 years to 2015. He is now principal consultant at AgriFood Systems. He can be contacted at kbwoodford@gmail.com

On Farm Story

28 FARMERS WEEKLY – farmersweekly.co.nz – June 17, 2019

IN CHARGE: Logan Massie is operations manager on his family’s sheep and beef farm northeast of Dannevirke.

Having the best of both worlds

T

HE saying goes that if your job involves something you love doing you’re far more likely to be successful.

Logan Massie is taking that to the next level by combining two jobs he loves: working on the family farm and running his own showjumping business.

He sees no reason why the two can’t work together.

The 25-year-old is operation’s manager on his family’s 1100ha effective sheep and beef operation spread over half a dozen blocks northeast of Dannevirke.

It’s a job that keeps him pretty busy with the farm carrying 3000 ewes and 4500 hoggets over winter, of which about 2000 will be mated.

There’s also 350 R1 bulls and 200 Wagyu bulls along with 100 carryover dairy cows.

The farm’s main income comes from finishing cattle and lambs though there’s also a focus on breeding ewes. Some of which are bred and some they buy, before selling them as two tooths in December for clients to mate and build up the productivity of their own flocks.

All day-to-day work on the farm is either overseen or done by Logan though his father Grant is

WINNER: Logan Massie on Double J Kelvin in March when he won the six-year-old Horse of the Year title in Hastings.

Photo: KAMPIC/Kerry Marshall

still working on the farm, always available to provide his expertise and help out.

Logan says he has enjoyed farm work ever since he was a youngster growing up on the farm.

“I’ve always liked a challenge and farming is definitely that.

Every day there is something you can do better on the farm. There’s never nothing to do.

“Dad’s been a very good farmer and I’ve been lucky enough to pick up a lot of things off him,” he says, adding he has also learned from the farm’s former managers and stock managers and from working on neighbouring farms where he’s had a variety of summer jobs over the years.

“I’ve had plenty of experience on different farms and different operations but in the near future I’m looking to really challenge myself, how I can make this farm better and more productive.”

He’s fortunate the way the farm is set up and run is flexible. It’s never been a place where things are done because that’s the way they’ve always been done. All ideas and opinions welcomed.

That flexibility has also allowed him to develop his showjumping business.

There are not many places where he would be able to do a full day’s work on the farm then switch tack in the afternoon and get stuck into training showjumping horses.

Logan’s been riding all his life, having gone to pony club from a young age.

One thing led to another and it wasn’t long before he was winning club competitions and once that started there was no stopping him.

Soon he was winning national age group events and representing New Zealand at age group level.

After leaving school he went to Europe as an 18-year-old, keen to gain an insight into the world of professional showjumping.

Every year for five years he spent six months working in Europe, training and being exposed to high-level competition while learning what it is like to be a full-time professional in that world.

One of the people he worked for was Irish London Olympic bronze medalist Cian O’Connor.

“I really learned the ins and outs of his business. How busy it was and how much commitment you have to put in.

“And I looked at that really hard and took that away, came back for a break and decided I probably enjoy running the farm just as much as I do showjumping.”

But that doesn’t mean he is going to give up on the sport.

“When I came home I sat down with my parents and we worked out how I could do both.”

The choice was to either just run a couple of horses as a hobby or treat it as a business and to do that it had to pay its way.

“I didn’t want it to just be a hobby,” he said.

“So we worked out that if we

On Farm Story

staff the farm right and we staff the horses right that I could do what I like doing and hopefully succeed at it.”

For that to happen, flexibility and hard work are essential.

Every afternoon around 3pm Logan puts the farm work to one side and the horse work begins.

It might mean some of the smaller farm jobs fall behind now and then but that’s the trade-off from running the two businesses side by side.

“I believe I’m doing a good job and doing the best I can on the farm and my horses definitely haven’t limited from me running the farm so far. But we make sure we get that balance right and the days are very busy and long to get all that done.”

The horses are looked after during the day by grooms so they are ready for work once Logan and whoever else is working with him, be it girlfriend Alexa or, until she recently headed to Europe for her OE, his sister Georgia.

“They’re all caught, they’re all fed, they’re all groomed, the saddles are on so when I come off the farm I get straight on a horse and start riding.”

There are benefits to training showjumpers on a farm because horses are like high-level athletes and enjoy a variety of work.

Farms have that in spades, whether it’s rides in paddocks, on hills or down the river, which is complemented by training, flat work and schooling.

“There’s a vast variety of training methods that give you a wellbalanced horse that can compete under pressure. And that variety makes them happier.”

Originally he worked with stables and an arena on his parents’ home property but recently bought a 4.6ha plot from the family farming company so he can develop his own professional facilities.

Work on the arena is under way and the goal is to have everything finished by the time the new showjumping season starts on September 1, with all the horses

FARMERS WEEKLY – farmersweekly.co.nz – June 17, 2019

TOIL: All day-to-day work on the farm is either overseen or done by Logan.

he works run out of there in future.

At any one time there can be 10 horses in work. There’s currently eight showjumpers along with client horses for starting and training.

Most of the horses are familyowned though the structure of that ownership varies. His parents Grant and Brenda have shares in some while his Auckland-based brother Cameron has also owns shares. There are also a couple of horses whose owners are outside the family.

The Massie showjumping

business pays its way through the sale of the horses they produce, with prize money from competitions just the cream on top. There is a growing market for producing horses and selling them both here and overseas.

Most of Logan’s family-owned horses are bought as three or fouryear-olds and can be sold at any stage of their development, either for their potential or once they are at a level they are best suited to.

As well as training horses Logan also helps riders, particularly young people with potential.

“Jumping is becoming

equestrian’s most popular discipline, with a lot of kids looking to be competitive. I can help them by using what I’ve learned both here and overseas.”

He’s also maintained his connections to Europe and is still called on from the other side of the world. About a year ago he was contacted by O’Connor, who asked if he could fly to Florida for a couple of weeks to help supervise the transport of horses back to Europe.

The transport of top horses requires suitably experienced and qualified people and Logan accompanied the horses on a flight to Amsterdam before helping truck them back to base in Germany.

The NZ showjumping season lasts six or seven months and most weekends during summer Logan takes some of the horses he is training to an event.

Dannevirke is a good base because of its central location.

“It’s very central to all the shows we have to go to. We don’t often drive more than two hours to a show while some people might be driving six or seven to the same show.”

There are big shows in Dannevirke, Feilding, Taupo, Hamilton and Auckland, along with the Horse of the Year show every March in Hastings.

Competitions are split into a range of different classes. Logan competes mainly in the age group series, where horses jump against others their own age.

The Grand Prix series has jumps 1.5m high. In each series points are accumulated throughout the season to find an overall winner.

On top of that there’s the World Cup series. Only six World Cup rounds are held in NZ and the goal is to qualify for the World Cup final, which is usually held in Europe or North America, This year Logan’s competed in all six rounds of the World Cup’s NZ rounds on his best horse, Intellect, finishing eighth of the 26 riders. It was a step up for the horse in height and technicality and Logan was happy with how he performed.

“It was pretty exciting, given that’s as big as it gets.”

Then in March he won the sixyear-old Horse of the Year title on Double J Kelvin, a horse bred by his business, One of the most rewarding

MONEY: The farm’s main income comes from finishing cattle and lambs though there’s also a focus on breeding ewes, which are sold as two-tooths in December.

29

aspects of working with horses is when all the hard work, attention to detail and management pays off, targeting a big class then winning it.

There’s nothing more rewarding than putting in all that effort and work, travelling to the show, everything going to plan and pulling off a win or even coming very close to what you wanted to do.

I’ve always liked a challenge and farming is definitely that. Every day there is something you can do better on the farm. There’s never nothing to do.

Logan Massie Farmer “I mean that’s pretty exciting and that’s pretty cool for everyone around you because it’s not just you and the horse, there’s grooms, there’s my parents, there’s supporters and owners, there’s plenty of people who have backed you to do that.”

On the world stage NZ has a fantastic reputation in eventing circles but more showjumping riders are needed for that part of the sport to grow.

Logan would like to be part of that and in the future would like nothing more than to take some of his own horses on six-month European campaign.

“It’s about being the best you can be and hopefully in the near future representing NZ on the world stage, getting horses back over to Europe that are good enough to jump at the top of the world – the Olympics or World Equestrian Games.

“That’s what every competitive showjumper here in NZ is working to do. We’re a long way away from where the action happens but we can get there.

It has been done and everyone’s aiming to do that.

“That’s what we’re striving for.”

That and getting the most out of the farm. >> Video link: bit.ly/OFSmassie

FEILDING 54 Kimbolton Road FEILDING feilding@pb.co.nz 06 323 5544

Property Brokers Limited Licensed under the Real Estate Agents Act 2008

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Otiwhiti winters over 13,500 stock units and is subdivided into 38 main paddocks, with excellent natural water. Improvements include four dwellings, extensive support buildings, eight-stand woolshed with covered yarding and multiple sets of sheep and cattle yards. The cadet school utilizes the cook house,

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Real Estate

FARMERS WEEKLY – June 17, 2019

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TIMARU Hastings McLeod Ltd Licensed REAA 2008

Cnr Church & Sophia Sts TIMARU Office 03 687 7166

Profitable performer

Kaukapakapa 137 Cameron Way WEB ID TMR68679 ALBURY 171 Monavale Road View By Appointment This farm offers you diversity, currently run as a sheep DEADLINE SALE closes Thursday 11th July, 2019 at and beef property with dairy support but suits all types 4.00pm, (unless sold prior) of farming including cereal, deer and 50 - 100 ha of forestry. The farm is 299.0638 ha, has a newly painted home situated for the sun and mountain views, a large set of covered yards combining deer and sheep, a 3 stand shearing shed, plenty of other buildings plus a Michael Richardson 2nd older home. The vendor will look at selling the Mobile 027 228 7027 entire property or a lease to buy, purchase a title and Office 03 687 7145 Home 027 228 7027 lease the other, or lease the entire property.

DEADLINE SALE

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Bathed in sunshine and enjoying panoramic rural views, this spacious 365sqm executive home - and the equally generous 80 hectares grazing farm it sits upon, in two titles - offers the ultimate Kiwi lifestyle. Step inside and discover four good-sized bedrooms, a media room and spacious open plan living areas which flow out to the in-ground heated swimming pool. The farms flat to undulating contour has been well subdivided into approximately 32 paddocks and has all the infrastructure you'll ever need.

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Tender Closing 4pm, Thu 11 Jul 2019 41 Queen St, Warkworth View Sun 12-1pm John Barnett 021 790 393 john.barnett@bayleys.co.nz MACKYS REAL ESTATE LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008

Purchase the house and 80ha farm in two titles, or 78ha farm with barn accommodation, or home on 1.6ha.

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Perfect Kiwi Lifestyle KATIKATI 48C TETLEY ROAD

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Set on 4.1ha on the sea side of SH2, this property features 2.82ca/ha of green kiwifruit, a grazing paddock, extensive orchard shedding and a bore to provide ample water to the frost protection system and spray fill. The large four bedroom family home sits proudly, overlooking the harbour and rural Katikati - the views are simply stunning. So close to Katikati township, just a few minutes drive away. It’s all here!

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Real Estate

FARMERS WEEKLY – June 17, 2019

T RA NS F O RMIN G R E A L E S TAT E INTO R E A L A DVA NTAGE FOR SALE TAKAPU VALLEY FOREST Wellington

NEAR MATURE FOREST MIXED AGE CLASS CBRE Agribusiness is delighted to present the Takapu Valley Forest to the marketplace. Located near Wellington in the Southern North Island (SNI) region of New Zealand, the outright sale (land and trees) of this medium scale forest presents an attractive opportunity for purchasers.

Cost-effective cart distances to domestic and export markets, a mixture of mature and near mature crop and freehold land, this opportunity will ideally suit purchasers looking to secure immediate and forward volume while adding a strategically located medium sized forest to their existing estate. Call today to receive the Information Memorandum. + + + + + +

Total land area of 235.6 hectares* Net Stocked area 174.7 hectares* (P.Rad) Mixed age class established between 1984 and 1996 Ongoing carbon earning potential 15.6 kilometres from Wellington CentrePort Inventory and online dataroom available

FOR SALE BY TENDER Tuesday 9 July 2019 at 4pm NZST

CONTACT US WYATT JOHNSTON 027 8151 303

JEREMY KEATING 021 461 210

*Approximate areas only www.cbre.co.nz/219020Q29 CBRE (Agency) Limited, Licensed Real Estate Agent (REAA 2008)

Real Estate

FARMERS WEEKLY – June 17, 2019

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33

RURAL | LIFESTYLE | RESIDENTIAL

PRICE REDUCED

WHAKATANE 2060C Manawahe Road Action Needed - 82 Hectares Manawahe - rolling hill country, known for its reliable summer rainfall.

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201.46ha (498 acres) ready for second rotation Post 1989 forest with all roading and skid sites in place No ETS obligations Well located at Otane in Central Hawke's Bay A proven block with all infrastructure in place for the next harvest, a significant saving for the next rotation Good location to Napier Port 64km away and capable of logging 12 months of the year

TENDER Plus GST (if any) Closes 2.00pm, Wednesday 3 July PGG Wrightson Real Estate, Hastings VIEW By Appointment Only

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LK0098079©

For Sale by Negotiation

Central Waikato Realty Limited. Licensed REAA 2008.. All information contained herein is gathered from sources we consider to be reliable. However, we cannot guarantee or give any warranty about the information provided. Interested parties must solely rely on their own enquiries.

Land is the biggest asset to any farming business so it pays to stay up to date with the market.

Connect with the right audience at

farmersweekly.co.nz/realestate

Pauanui 137 Motu Grande Waterfront Lifestyle in Paradise!

If it’s time to think about lifestyle and downsizing from the farm, then this property has it all – be on holiday in your own home! The Waterways offers a unique canal lifestyle to pull up and park your boat on your own private jetty.

This large French Provincial inspired property is laid out for comfortable living and having family and friends over with the self-contained 2 bedroom apartment! Why not live at the beach!

5

3

3

2

2

1

For Sale

$3,195,000 View: www.harcourts.co.nz/PAU2752

Alyce Rowe M 027 469 4338 Katie Wardenburg M 021 359 554 Coromandel Beaches Realty Limited Licensed Agent REAA 2008

LK0098110

THE DESTINATION FOR RURAL REAL ESTATE

DOLOMITE NZ’s finest BioGro certified Mg fertiliser For a delivered price call ....

0800 436 566

An opportunity has become available for a capable head shepherd on a 2000ha, 20,000su sheep and beef station 14km east of Taihape.

LK0098137©

Requirements: • Experienced stockman • 4-5 broken in dogs • Able to work unsupervised • Able to accept responsibility • Sound knowledge of hill country farming A 3-bedroom house is available close to a primary school.

For further information contact: the manager Kevin Saville phone: 06 388 0966 or email: kr.saville@gmail.com

ATTENTION FARMERS

DOGS FOR SALE

FLY OR LICE problem?

Electrodip - The magic eye sheepjetter since 1989 with unique self adjusting sides.

Incredible chemical and time savings with proven effectiveness.

Phone 07 573 8512 w w w. e l e c t r o d i p . c o m

FAST GRASS www.gibb-gro.co.nz GROWTH PROMOTANT Only $6.00 per hectare + GST delivered Brian Mace 0274 389 822 brianmace@xtra.co.nz

THREE 6-MONTH-OLD Heading dogs. Well bred, working sheep. Phone 06 758 4225. Taranaki.

VIEW SIXTY DOGS. Deliver NZ wide, trial, guaranteed. www. youtube.com/user/ mikehughesworkingdog/ videos 07 315 5553.

CRAIGCO SHEEP JETTERS. Sensor Jet. Deal to fly and Lice now. Guaranteed performance.

Unbeatable pricing.

Phone 06 835 6863. www.craigcojetters.com

ANIMAL HEALTH www.drench.co.nz farmer owned, very competitive prices. Phone 0800 4 DRENCH (437 362).

POWER CABLE

farmersweeklyjobs.co.nz

Agribusiness Agricultural Assistant Chief Executive Officer Farm Manager Livestock Other Sharemilker Shepherd Shepherd General Stock Manager Tractor/Truck/Machinery Operator

PULLETS HY-LINE brown, great layers.

07 824 1762. Website: eurekapoultryfarm.weebly. com – Have fresh eggs each day!!!

HOMES FARM SHEDS SUBDIVISIONS PUMPS

CONTRACTORS

LK0095684©

Prices include delivery to your door!

For friendly & professional advice CALL 0800 843 0987 Fax: 07 843 0992 Email: power@thecableshop.co.nz THE CABLE SHOP WAIKATO www.thecableshop.co.nz

THERE’S PLENTY OF mental health talk in our communities and we’d all like a solution to keep our people alive. A Massey University study of dairy farmers’ social ability and connectedness needs your input to understand potential risks and improve wellbeing.

You can contribute by completing the survey at https://forms.gle/ EsoDRPLz5QSZMx6g9.

BIRDS/POULTRY

We could save you hundreds of $$

JOBS BOARD

DAGS .25c PER KG. Replacement woolpacks.

PV Weber Wools.

Kawakawa Road, Feilding. Phone 06 323 9550.

THI N K PRE BU IL T

GORSE SPRAYING SCRUB CUTTING. 30 years experience.

Blowers, gun and hose.

No job too big. Camp out teams.

Travel anywhere if job big enough. Phone Dave 06 375 8032.

DOGS FOR SALE HEADING PUPS. Sire Neville Child’s ‘Harry’.

Two NZ titles. Dam ‘Girl’.

Linebred ‘Deal’ NZCh. NZCh Sire. Phone 027 450 6095.

*FREE upload to Farmers Weekly jobs: farmersweeklyjobs.co.nz

NEW HOMES WELL INSULATED – AFFORDABLE

LK0096815©

Contact Debbie Brown 06 323 0765 or email classifieds@globalhq.co.nz

Shepherd Wanted Whana Whana Station is a 1400ha family owned property located 40 minutes West of Hastings.

The farm is a mixture of hill country and intensive flats, running breeding ewes and cows with trading/finishing cattle and lambs.

We seek a driven, positive person to join and contribute to our team.

Our homes are built using the same materials & quality as an onsite build. Easily transported to almost anywhere in the North Island. Plans range from one bedroom to four bedroom First Home – Farm House Investment – Beach Bach

Accommodation is provided on farm in a tidy, renovated quarters.

Please send your CV to us at: whana@ruralinzone.net

LK0098135©

A competitive remuneration package can be negotiated depending on level of experience.

FARM MINDERS RETIRED SHEEP AND BEEF farming couple available to look after your home, animals and farm nationwide. Phone Margaret 021 327 980 or David 0274 484 022.

GOATS WANTED

FERAL GOATS WANTED. All head counted, payment on pick-up, pick-up within 24 hours. Prices based on works schedule.

Experienced musterers available.

Phone Bill and Vicky Le Feuvre 07 893 8916.

GOATS WANTED. All weights. All breeds.

Prompt service. Payment on pick up. My on farm prices will not be beaten.

Phone David Hutchings 07 895 8845 or 0274 519 249. Feral goats mustered on a 50/50 share basis.

GOATS. 40 YEARS experience mustering feral cattle and feral goats anywhere in NZ. 50% owner (no costs).

50% musterer (all costs).

Phone Kerry Coulter 027 494 4194.

HIGH PRESSURE WATER PUMPS, suitable on high headlifts.

Low energy usage for single/3-phase motors, waterwheel and turbine drives. Low maintenance costs and easy to service. Enquiries phone 04 526 4415, email sales@hydra-cell.co.nz

HORTICULTURE NZ KELP. FRESH, wild ocean harvested giant kelp.

The world’s richest source of natural iodine. Dried and milled for use in agriculture and horticulture. Growth promotant / stock health food. As seen on Country Calendar. Orders to: 03 322 6115 or info@nzkelp.co.nz

LIVESTOCK FOR SALE WILTSHIRES-ARVIDSON. Self shearing sheep. No1 for Facial Eczema. David 027 2771 556.

B R O O K L A N D SIMMENTAL, LBW, short gestation, bulls, suitable for beef or dairy, EBV’s available. Phone 06 374 1802.

MACHINERY FOR SALE 4WD KUBOTA 4500 tractor. F.E.L. Quick hitch w/bucket. Less than 500 hours on reconn’d engine.

Great rubber.Other work done. Receipts and history available.Offers over $12,000 + gst. Phone 06 376 3966.

PROPERTY WANTED HOUSE FOR REMOVAL wanted.

North Island.

Phone 021 0274 5654.

BOOK AN AD. For only $2.10 + gst per word you can book a word only ad in Farmers Weekly Classifieds. Ph Debbie on 0800 85 25 80 to book in or email classifieds@ globalhq.co.nz

TARPAULINS PVC TARPS TARPAULINS - PVC TARPS. All sizes. Top quality Ripstop PVC.NZ Made. Phone for quote Westlorne Ohakune 06 385 8487. www. westlorne.co.nz or email: westlorne@xtra.co.nz - FREE delivery North Island.

TRAINING COLLARS WORK DOG training collars. 1 sender and 1 collar $100- delivered. 3 dogs/sender, $50/extra collar. aglandstock@gmail. com

NOTICEBOARD ADVERTISING

Have something to sell?

Advertise in Farmers Weekly Phone Debbie Brown 0800 85 25 80 or email classifieds@globalhq.co.nz

Visit www.customweld.co.nz Facebook: Tauranga CustomWelding

Call or email us for your free copy of our plans Email: info@ezylinehomes.co.nz Phone: 07 572 0230 Web: www.ezylinehomes.co.nz

STOCK FEED HAY 12 EQUIVALENT squares $70. 15 equivalent rounds $75. STRAW 12 equivalent squares $55.

BALEAGE at $80. Unit loads available. Phone 021 455 787.

FO SALR E

SELLING

SOMETHING? PH DEBBIE 0800 85 25 80

enviroMate 100

TM

The latest in Pest Control …

The game changer that will redefine the future of our forests.

All it requires now is your help to make this change happen.

Referendum—Commodity Levies (Wheat Grain) Order 2014

enviroMate 100 is now available from Eco-Land.

TM

United Wheatgrowers NZ Limited have operated a compulsory insurance scheme covering all wheat grown within New Zealand since 1987 – initially through the Wheat Producers Levy Act 1987 and subsequently Commodity Levy Orders established under the 1990 Commodity Levies Act in 1997, 2002, 2008, and 2014. The disaster relief insurance is currently providing wheat growers $225 per tonne cover, through insurance agent FMG, at a levy rate of $3.75 per tonne. The scheme has no minimum loss and no excess on claims.

Under the Commodity Levies Act 1990 the organisation needs to renew the levy order within six years of its establishment. United Wheatgrowers NZ Limited is wishing to renew its Levy Order this year.

You are urged to vote in this referendum.

www.ecoland.co.nz

Voting papers will be sent out on Saturday 15th June 2019 and need to be correctly completed and returned no later than Thursday 11th July 2019.

If any grower is aware of any new wheatgrowers who may need to be added to the UWG database, or any growers who have ceased growing wheat, please telephone 0508 666 556 and advise our Returning Officer as this will reduce the number of no votes received.

TO SAV $3 E U 50 P +G ST

Free Freight Nationwide on Mowers until end of June 13.5HP. Briggs & Stratton Motor. Electric start.

1.2m cut

TOWABLE TOPPING MOWER

LK0098113©

Someone with a desire to grow their skill set and further their career in the industry will do well with us.

YOUR FARM MAPPED showing paddock sizes.

Priced from $600 for 100ha. Phone 0800 433 855. farmmapping.co.nz

We come to you anytime

The role will primarily involve a great variety of stock work with general duties when required.

The person with the right attributes will be given further responsibilities as their confidence grows and they become more capable. A key feature will be the ability to display strong, accurate livestock and pasture management, targeting top performance.

FARM MAPPING

Servicing Bay of Plenty and Waikato NEW WORK and REPAIRS to anything on the farm or workplace

We are looking for someone with working experience and a capable team of 3-4 working dogs.

The ideal applicant would have the following qualities: • Be reliable and have a positive attitude • Have high personal standards and a desire to improve • Accurate record keeping • Excellent communication • Capable of working on their own or as part of a team

12 MONTHS TO 5½-yearold Heading dogs and Huntaways wanted. Phone 022 698 8195.

WATCH, GUARD, working dogs. 07 315 5553. Mike Hughes.

PUMPS

Mobile welding & light fabrication

SOLID – PRACTICAL

*conditions apply

DOGS WANTED

GOATS WANTED

LK0098111©

Head Shepherd Motukawa Land Company

COUNTRY LADY LOOKING FOR LOVE! At 5’5 with a slim build, blonde hair and hazel eyes this lady loves the country life and the challenge it throws at her. She enjoys horse riding, camping, fishing, country music, cooking and a good conversation. She is looking for a likeminded country man.

To meet please call 0800 446 332 Quote code 57 www.countrycompanionship.co.nz

Noticeboard

TOWABLE FLAIL MOWER GST $4400 INCLUSIVE

12Hp Diesel. Electric Start

11.5HP Briggs & Stratton Motor.

Industrial. Electric start.

GST $4200 INCLUSIVE

50 TON WOOD SPLITTER

GST $3990 INCLUSIVE

To find out more visit www.moamaster.co.nz

MOA MASTER

Phone 027 367 6247 • Email: info@moamaster.co.nz

LK0097839©

MORE AGRI JOBS

ANIMAL HANDLING

LK0095831©

SEE PAGE 8

classifieds@globalhq.co.nz – 0800 85 25 80

LK0098178©

Agri Job Board

Livestock

FARMERS WEEKLY – June 17, 2019

SALE TALK

Shortly before a couple’s 25th wedding anniversary, husband John sent 25 long-stemmed yellow roses to his wife, Jenny. After a few days she plucked all the petals and dried them. On the night of their anniversary, she spread the petals over the bed and lay on top of them, wearing only a negligee, and waited excitedly for her husband’s reaction. As John walked into the room, his eyes opened wide and a smile slowly spread across his face. Looking lovingly at his wife he said, “Darling, tell me those are potato chips.”

S

LIVESTOCK ADVERTISING

260 ROM 2TH SIL SUFTEX 05.03 171%

730 4TH & 4YR ROM FE Tol Ewes RWR 14.04

50 Top Station Bred R2YR ANG HEIFERS (Perfect for breeding) 420kg 40 1YR ANG & Exotic HEIFERS 300kg

with Farmers Weekly

STOCK REQUIRED R2YR Traditional STEERS 400-520kg R1YR STEERS or HEIFERS 220-250kg R2YR Friesian BULLS 400-430kg Male LAMBS < 32kg or 36-44kg

PHONE NIGEL RAMSDEN 0800 85 25 80 CLEARING SALE OF ARABLE & VEGETABLE, IMPLEMENTS & MACHINERY ON ACCOUNT ALPINE FRESH LTD

since 1937

Wednesday 19th June 12.00pm C/o AC & A Howey 75 Divan Road, Timaru Complete Dispersal Sale: Includes 18 Tractors, 4 Truck Trailer Units, Combine, Ag Trailers, Telehandlers, Utes, Hard Hose Irrigators, Large range of Cultivators, Drill, Rollers, Fert Spreaders, Hay Making Equipment, Potato and Onion Planting and Harvesting Equipment.

Many items of miscellaneous Tools and Equipment.

Full details & photographs available on Agonline & Facebook Signposted off SH 1 & SH 8 Sale conducted Purchase Price plus 15% GST Terms are Cash or Cheque on Day of Sale unless you have PGG Wrightson Ltd account. No Eftpos available.

Annual Sale 110 Bulls

LK0098117©

STERN ANGUS

Carrfields Livestock Darrin Holm, 027 242 2905

20 June – 12.30pm Totara Valley, South Canterbury

Enquires: Jonty Hyslop 027 595 6450 or Logan Scannell 027 251 1711

James Fraser 021 186 4796 Donald Hay 021 187 8186

www.sternangus.co.nz

Helping grow the country

www.dyerlivestock.co.nz

Looking for Hill Country Bulls?

Ross Dyer 0274 333 381 A Financing Solution For Your Farm E info@rdlfinance.co.nz

Meadowslea F540

Exceptional Maternal and Fertility traits for Hill-Country

Meadowslea Angus offers: 76 Hill Bred Bulls Strong NZ Bloodlines

_______________________________

On property Fairlie, Friday June 21 at 1pm

Catalogue online and on facebook: www.meadowslea.co.nz David Giddings 03 685 8027 PGG Wrightson Peter Walsh & Associates Rural Livestock Carrfields Livestock

byllivestock.co.nz

07 823 4559

byllivestock

LIVESTOCK ADVERTISING PHONE NIGEL RAMSDEN 0800 85 25 80

CELEBRATING 70 YEARS OF BREEDING ANGUS BULLS

tangihau angus bull sale 2019 Tangihau Angus will offer 25 two year bulls for sale that will be inspected and passed for transfer prior to the sale. The sale will be conducted alongside Cricklewood Angus who will offer 10 bulls for sale.

FOR MORE INFORMATION OR TO VIEW TANGIHAU ANGUS CONDITIONS OF SALE PLEASE VISIT WWW.TANGIHAUANGUS.CO.NZ

ENQUIRIES TO: Dean McHardy (06) 867 0837 | (027) 242 5321

some Enjoy oast C East ality it hosp

Cricklewood Angus proudly presents 10 bulls for sale at the inaugural Tangihau Angus sale 2019 ENQUIRIES TO: STUD MANAGER: Ben White (06) 837 8666 STOCK AGENT: Ian Rissetto 027 444 9347 www.cricklewoodangus.co.nz

All bulls will be passed for transfer prior to the sale.

**PLEASE NOTE THE CHANGE OF SALE DATE AND VENUE**

Sale onsite at the Tangihau Angus sale complex Monday 24th June at 9.00am

Paddock viewing available from 7.00am

35

STOCK FOR SALE

LK0097831© LK0093012©

Approx 12.30pm A/c Daldina Family Trust Friesian Herd Owner Bred 60 years 95 Frsn 2-8yr C.R.V Cows VIC to Frsn AI, D.T.C 20/7/19 Jul/Aug Calving. BW -12, PW -16 RA 83% TB Status C10. Blanket Dry Cow.

LK0098164©

FEILDING SALEYARDS MONDAY 24TH JUNE

livestock@globalhq.co.nz – 0800 85 25 80

Sale located at: Tangihau Station, 119 Taumata Road, Rere, Gisborne *Terms to follow in our 2019 sale catalogue

MARKET SNAPSHOT

36

Market Snapshot brought to you by the AgriHQ analysts.

Suz Bremner

Mel Croad

Nicola Dennis

Cattle

Reece Brick

Caitlin Pemberton

Sheep

BEEF

Deer

SHEEP MEAT

VENISON

Last week

Prior week

Last year

NI Steer (300kg)

5.55

5.50

5.40

NI lamb (17kg)

7.75

7.65

7.70

NI Stag (60kg)

9.00

8.90

11.10

NI Bull (300kg)

5.30

5.20

5.30

NI mutton (20kg)

5.30

5.25

5.00

SI Stag (60kg)

8.95

8.95

11.10

NI Cow (200kg)

4.20

4.10

4.35

SI lamb (17kg)

7.45

7.30

7.55

SI Steer (300kg)

5.15

5.15

5.25

SI mutton (20kg)

5.20

5.15

5.15

SI Bull (300kg)

4.95

4.90

5.05

Export markets (NZ$/kg)

SI Cow (200kg)

3.55

3.45

3.80

UK CKT lamb leg

US imported 95CL bull

7.81

7.70

6.53

US domestic 90CL cow

7.49

7.49

6.94

Slaughter price (NZ$/kg)

Last week Prior week

Last year

9.78

8.96

Export markets (NZ$/kg)

$/kg CW

6.0

5.5

$/kg CW

South Island steer slaughter price

6.0

5.5

11.5

4.5

10.5

$/kg CW

Oct

Dec 5-yr ave

Feb

5-yr ave

Apr

Jun

2017-18

Dairy

Aug 2018-19

Apr 2017-18

Jun

Aug 2018-19

Last week

Prior week

Last year

-

-

3.26

Last price* 3000

3090

3250

SMP

2455

2460

2550

AMF

5830

5830

5900

Butter

4750

4955

5275

Milk Price

6.40

6.40

6.48

May-18

* price as at close of business on Thursday

3300

Meridian Energy Limited (NS) Auckland International Airport Limited

Jul-18

Sep-18

Nov-18

Jan-19

Mar-19

May-19

US$/t

$/tonne

2900 2800

Jul

Aug Sep Latest price

Oct

Nov 4 weeks ago

Dec

Close

YTD High

4.48

4.49

YTD Low 3.38

9

9

7.065 10.42

The a2 Milk Company Limited

14.71

16.98

Fisher & Paykel Healthcare Corporation Ltd

15.2

16.69

12.3

Spark New Zealand Limited

3.875

4.18

3.54

Ryman Healthcare Limited

11.51

12.5

10.4

Mercury NZ Limited (NS)

4.03

4.03

3.51

Contact Energy Limited

7.55

7.7

5.82

Fletcher Building Limited

5.4

5.5

4.57

Port of Tauranga Limited (NS)

6.14

6.21

4.9

Listed Agri Shares

5pm, close of market, Thursday

Company

Close

YTD High

YTD Low

The a2 Milk Company Limited

14.710

16.980

10.420

420

Comvita Limited

3.890

5.420

2.920

Delegat Group Limited

11.170

11.170

9.400

400

Fonterra Shareholders' Fund (NS)

3.900

4.850

3.890

380

Foley Wines Limited

1.950

2.000

1.470

Livestock Improvement Corporation Ltd (NS)

0.900

1.050

0.750

New Zealand King Salmon Investments Ltd

2.210

2.980

2.100

340

PGG Wrightson Limited

0.520

0.580

0.470

320

Sanford Limited (NS)

6.900

7.060

6.350

Scales Corporation Limited

4.730

5.130

4.340

SeaDragon Limited

0.001

0.003

0.001

Seeka Limited

4.800

5.350

4.200

Synlait Milk Limited (NS)

9.960

11.350

8.450

360

Jul-18

Sep-18

Nov-18

Jan-19

Mar-19

May-19

350

T&G Global Limited

2.750

2.810

2.600

S&P/NZX Primary Sector Equity

16268

17434

15063

S&P/NZX 50 Index

10224

10263

8732

300

S&P/NZX 10 Index

9886

10066

8280

3200

3000

750

Company

WAIKATO PALM KERNEL

3100

833

440

May-18

WMP FUTURES - VS FOUR WEEKS AGO

833

Top 10 by Market Cap

400

320

vs 4 weeks ago

WMP

302

DAP

CANTERBURY FEED BARLEY Prior week

483

321

4.75

$/tonne

Nearby contract

625

321

-

$/tonne

DAIRY FUTURES (US$/T)

625

-

Mar-19 May-19 Sept. 2020

Aug 2018-19

Urea

30 micron lamb

360 Jan-19

Jun

Last year

3.35

440

Sep-18 Nov-18 Sept. 2019

Apr 2017-18

Prior week

-

480

6.25

Feb

Last week

-

CANTERBURY FEED WHEAT

6.75

NZ average (NZ$/t)

37 micron ewe

7.25

Jul-18

Dec

Fertiliser Super

Grain

Data provided by

MILK PRICE FUTURES

5.75

Oct

FERTILISER

Coarse xbred ind.

Feb

8.5

5-yr ave

(NZ$/kg)

Dec

9.5

6.5

6.5

WOOL

5.0

Oct

South Island stag slaughter price

7.5

7.5

4.5

$/kg MS

6.5

5.5

5.5

4.5

8.5

6.5

8.5

4.5

9.5

7.5

7.5

South Island lamb slaughter price 5.0

Last year

10.5

$/kg CW

$/kg CW

North Island steer slaughter price

North Island lamb slaughter price

Last week Prior week

North Island stag slaughter price

11.5 9.81

8.5

Slaughter price (NZ$/kg)

$/kg CW

Slaughter price (NZ$/kg)

Ingrid Usherwood

250 200

May-18

S&P/FW PRIMARY SECTOR EQUITY

Jul-18

Sep-18

Nov-18

Jan-19

Mar-19

May-19

16268

S&P/NZX 50 INDEX

10224

S&P/NZX 10 INDEX

9886

37

FARMERS WEEKLY – farmersweekly.co.nz – June 17, 2019 NI SLAUGHTER BULL ( $/KG)

5.30

NI SLAUGHTER COW ( $/KG)

4.20

SI SLAUGHTER STEER ( $/KG)

5.15

R3 HEREFORD-FRIESIAN STEERS, 465-550KG, AT WELLSFORD ( $/KG LW)

2.72

Taking the pulse ...

“Confidence in the overall outlook with rising schedules for late winter and early spring further strengthened positive sentiment. Stock numbers going through South Island sales were on par with recent years, and autumn grass growth suggests minimal pressure for farmers to finish stock by a particular date. Store lamb prices therefore remained firm,” he said.

H

Hi, my name is Gordon Mead and I’m farming in little district of Hikamutu down in Taumaranui.

Home country?

No, home country’s actually Gisborne.

And what took you to Taumaranui?

A job about seven years ago. And I finally left to do my big OE, came back again. I loved the place.

And how is the season looking down there? What’s the farm set up like, sheep and beef?

Yes, sheep and beef. It just purchased an additional 900 acres. So we actually should be pretty comfortable in terms of grass now, we’ve had a short autumn.

Meaning not much grass?

Yeah, meaning not much grass. Things are a little bit tougher coming into the winter but yeah, thankfully, we’ve got the new farm and, yeah, we can do things a lot better now.

How do you feel looking forward, feed and the industry?

All right. Feed-wise we’re going to come into spring looking really good. Industry wise it’s still yet to be seen. I mean is this big focus on planting millions of hectares.

Pine trees?

Yeah, and put it this way, if we want to keep our exports and everything on the up then can the idea of this planting millions of hectares because you’re going to kill the farming industry. A lot of city folk don’t actually realise what we do for the country.

Hi my name is Trent. I’m a sheep and beef farmer on the Napier-Taupo road and I work on Lochinver Station.

Big station, aye give us the figures for that?

Oh, I can’t quote you exactly, aye, but yeah it’s big. About 40,000 acres of land.

Store lambs featured in South Island livestock transactions through the autumn, with stock from Southland and Otago making their way to Canterbury finishing farms.

PGG Wrightson South Island Livestock Manager Shane Gerken is encouraged by demand for lamb.

This week Radio New Zealand departed from its usual national round-up to sample thinking among the crowds at Fieldays.

I, I’M Aleisha Burnfield and I’m farming in Te Arawa in the mighty Waikato and 50 50 sharemilking there.

How’s it going?

Good. I just moved there in June so new herd and new farm, it’s going great so far.

And you’re going as a single woman.

Yep definitely. I’ve got some great support team.

How well set up is the farm that you’ve come on to?

Amazing. New infrastructure, well fenced, watered, great farm.

Lots of feed?

Yeah. Plenty of feed, all set to go for a good calving.

How are you feeling about the industry?

Great. Good place to be for young people. We don’t have lots of young people keen to enter but I am and I think there’s a few that are seeing the future in it so that’s great.

Are you from a farm?

Yep. We’ve got a couple of farms.

Autumn weather and trading conditions favour South Island sheep and beef markets

Meanwhile, South Island markets for cattle were more sluggish.

“In some districts the threat of mycoplasma bovis means farmers tend to be cautious. Elsewhere, farmers are waiting for kill space, have not yet finished cattle they bought last year, or intend taking them to optimal weight. Longer term, the market outlook is positive for manufacturing beef, which lines up with prime beef projections,” he said.

FUN FOR ALL: Families flocked to National Fieldays in Hamilton last week as the weather held for the first two days.

How well set up are you for winter?

Yeah, fairly well, I got a lot of crops on farm and stuff so a lot of silage on hand so you can get by.

And how do you feel about the industry?

It’s good. I’ve always wanted to be a sheep and beef farmer so it’s what I set out to do and that’s what I’m doing.

Are you from a farm?

Nah, I’m from Mt. Maunganui.

Is the job everything you hoped it would be?

Yeah, definitely. You know I love being out on the farm, aye, just wide open spaces. It’s a lot different from the city life.

My name’s Sam Harvey. I’m from Christchurch. Farming down in Springston. We have a pedigree Dorper stud.

Which is a type of sheep?

South African meat breed. So we’re breeding terminal sires for high-country stations. They’re using our genetics to give their lambs some hybrid vigour, get a bit more yield, get a bit better meat quality and then, yeah, get those premiums.

You’re going to tell me it’s going pretty well I guess but you don’t hear a lot about Dorpers in New Zealand?

No. I feel like the breed has got off its feet. And, yeah, there’s a lot of potential for the breed. Our family’s got some pretty good results from our animals, awards for tenderness, yeild, that type thing. Don’t have to shear them, don’t have to drench them.

How well set up is the farm for winter coming into spring?

She’s a little bit wet where we are, obviously, Springston. We’ve got water coming out the ground and, yeah, we’ve got a few grazing blocks on top of the

main farm. So, yeah, we’re looking good.

We’ve dropped numbers so we can focus on quality rather than quantity. And that’s paid dividends.

Hi I’m Darryn Mills from Waikato Milking Systems from the Central Otago area. It’s been a cold start to winter down in the south. Plenty of snow on the hills in central Otago and quite a bit of rain further south in the Southland and south Otago districts.

What’s happening on farm at the moment?

Most the cows are off farm now, away to winter grazing so there’s a lot of crops getting devoured, still a wee bit wet underfoot in a lot of places although certainly up in the Central Otago area it’s still fairly dry underfoot, just very cold.

We don’t see too much in the double digits in terms of temperature any more.

What are farmers busy doing?

I guess a lot of them are just unwinding after a after a long, busy season. Those that have the cows wintering off are probably taking advantage of a bit of a break and getting prepared to get into a bit of maintenance over winter ready for the coming season.

When you say maintenance what do you mean?

Oh, I guess just a bit of organisation, cleaning out the calf sheds, that sort of thing.

Do you typically see many South Islanders here at Fieldays?

It’s surprising actually who you run into at these field days. There are quite a few southerners that make the trek up, right the way through the South Island. Really, a lot of them use this as an excuse for a bit of a holiday, a bit of a break away, and quite a few carry on from here to their Pacific beach winter vacations.

Courtesy of Radio New Zealand Country Life You can listen to Country Life on RNZ at 9pm every Friday and 7am on Saturday or on podcast at rnz.co.nz/countrylife

Strong demand marked the start of the South Island bull sale season in late May. Early indications are positive and it appears vendor optimism among bull breeders is well founded.

According to Shane, deer farmers were also busy, selling weaners.

“Alongside the prevailing excellent prospects for beef and sheepmeat, the outlook for venison is highly satisfactory.

Consumers, particularly in some of our most important export markets, are responding positively to the story the deer industry has to tell about health and wellbeing, and environmental sustainability.

Demand for our product outstrips supply, leaving insufficient weaners to finish this winter. They have been highly sought after right through the selling season,” he said.

Get in touch: 0800 10 22 76 www.pggwrightson.co.nz

Helping grow the country

38

FARMERS WEEKLY – farmersweekly.co.nz – June 17, 2019

Monthly cattle fairs kick off in style at Taranaki Taranaki’s first official monthly cattle fair for 2019 made a great start to the season, with the quality beef-dairy adult cattle that precede this fair attracting local and Manawatu buyers. The highlight was the R2 steers as Hereford-Friesian, 364-454kg, traded from $3/kg to $3.19/kg, far exceeding the previous year’s levels of $2.72-$2.82/kg.

NORTHLAND Wellsford store cattle • R3 beef-dairy steers, 394-550kg, held at $2.68-$2.75/kg • R3 beef-dairy heifers, 442-556kg, also made $2.68-$2.72/kg • R2 Hereford-Friesian steers, 295kg, were strong at $900, $3.05/kg • R1 Angus steers, 217kg, were well sought at $800, $3.69/kg • R1 Friesian bulls, 178-206kg, improved to $510-$540 Throughput more than doubled at WELLSFORD last Monday, and though buyers were selective most traded at steady to improving levels. R3 Hereford steers, 407416kg, earned $2.59-$2.76/kg, while R2 Hereford-Friesian, 338-366kg, improved to $2.62-$2.81/kg. Quality Hereford heifers, 342kg, sold well at $2.72/kg, while HerefordFriesian, 343-402kg, held at $2.48-$2.57/kg, and 299-325kg improved to $2.69-$2.71/kg. The big lift in R1 cattle volume did little to diminish the market, and beef-dairy steers, 174-238kg, returned $630-$680, with 248-300kg improving to $760-$830. Traditional heifers, 188-286kg, were solid at $510-$670, though Hereford-Friesian had mixed results as 237-261kg strengthened to $655-$660, whilst 160-190kg eased to $475-$525.

Autumn-born beef-dairy steers, 123-149kg, sold well at $570-$650, with their sisters, 118-147kg, at $390-$500.

Kaikohe cattle • Top 2-year beef-cross steers made $2.85.kg • Yearling Angus and beef-cross steers sold for $2.90-$3.10/kg • Two-year beef-cross bulls earned $2.45/kg • In-calf Friesian cows fetched $1.80/kg A total of 450 head was on offer last week at KAIKOHE, with the market firmer in places, PGG Wrightson agent Vaughan Vujcich reported. Demand was good for steers with the top end strengthening, although most made between $2.75-$2.85/kg, and crossbreds, $2.50-$2.60/kg.

Yearling steers sold well, although heifers struggled a bit more with dairy-beef at $2.30-$2.50/kg and crossbreds below this.

AUCKLAND Pukekohe sale • Best prime steers made $2.77-$2.81/kg • Boner cows strengthened to $1.68-$2.16/kg • Medium weaner Angus heifers sold for $685, $2.70/kg An enthusiastic bench of buyers combined with good weather helped to lift the market at last week’s PUKEKOHE sale. Prime cattle and boner cows sold especially well, with the best heifers making $2.70-$2.80/kg. Quality weaner steers sold to keen interest, with medium Angus steers making $755, $4.40/kg, and crossbred steers, $550-$610, $3.72-$4.17/kg. Eighteen-month cattle were more of a struggle, particularly for off-types and sold in a wide range of $2.27-$2.77/kg.

COUNTIES Tuakau sales • Heavy store steers sold to $2.91/kg • Store heifers, 395-420kg, firmed to $2.74-$2.87/kg • Top prime heifers made $2.94/kg • Heavy ewes reached $232 Prices for older store cattle firmed by 5-10c/kg at TUAKAU last Thursday, Karl Chitham of Carrfields Livestock reported.

The small yarding included steers at 440-520kg, which traded at $2.75-$2.91/kg, with 368kg Hereford-Friesian making $2.84/kg and 341kg Hereford-Friesian, $2.93/kg.

Heavy heifers, 395-420kg, earned $2.74-$2.87/kg, and 320350kg types sold at around $2.90/kg. Speckle Park heifers at 263kg made $780, with 135kg Herefords fetching $540. Last Wednesday’s prime cattle market firmed by 10c/kg. Heavy steers traded at $2.88-$2.96/kg, with medium making $2.75-$2.82/kg.

Heavy heifers fetched $2.75-$2.94/kg and well-conditioned Friesian cows, $1.84-$2.00/kg. Medium cows, $1.66-$1.71/ kg. Last Monday’s sheep market was strong. The best of the prime lambs made $215, with other good-medium fetching

$148-$184. Store lambs returned $88-$122 and goodmedium ewes earned $132-$161.

WAIKATO Frankton cattle sale • R3 Hereford-Friesian heifers, 401-427kg, sold well at $2.76$2.81/kg • R2 Angus-cross heifers, 397-413kg, earned $2.80-$2.81/kg • All autumn-born R2 steers, 281-337kg, traded at $2.82-$3.02/kg • R1 Angus heifers, 180-209kg, lifted to $567-$667 • Prime Angus-Friesian heifers, 506-604kg, improved to $2.72$2.89/kg Just over 400 cattle were yarded at FRANKTON last Wednesday, and an increased buying bench kept the market buoyant.

R2 beef-cross steers, 466kg, were well received at $2.84/kg, as were Murray-Grey cross, 310kg, at $2.97/ kg. Hereford-dairy, 306-433kg, varied from $2.47/kg to $2.81/kg. Most R2 heifers traded at $2.58-$2.66/kg, while five quality R2 Hereford bulls, 531kg, sold for breeding at $1730. R1 Hereford-Friesian heifers, 118-131kg, were solid at $452-$468, whilst all autumn-born R1 cattle, 101-108kg, managed $410-$460 regardless of sex or breed.

Prime Angus-Hereford steers, 510kg, held at $2.79/kg, and Hereford-Friesian, 534-576kg, improved to $2.80-$2.83/kg.

Boner Friesian-cross cows, 648kg, lifted to $1.89/kg, and 513kg held at $1.72/kg.

BAY OF PLENTY Rangiuru sheep • R2 Hereford-Friesian heifers, 363-425kg, held at $2.73-$2.79/kg • Prime beef-cross and beef-dairy steers, 610-646kg, firmed to $3.03-$3.06/kg • All other prime steers traded at $2.85-$2.96/kg regardless of breed • Boner Friesian cows, 430-472kg, firmed to $1.84-$1.91/kg • Top pen of prime lambs reached $173, balance made $122-$153 Cattle and sheep volume were low at RANGIURU last Tuesday, though the store cattle pens had all bar cows presented. R3 steers and heifers traded at similar levels to the prime cattle at $2.88-$2.96/kg, with five Angus heifers, 550kg, taking top honours. Older Friesian bulls, 680kg, reached $2.81/kg. Good quality R2 heifers were offered, but lesser bred steers meant the best only made $2.35-$2.43/kg, with Friesian, 292kg, at $2.19/kg. Quality was better for R1 steers, and Angus-Hereford, 300kg, made $845, and lighter Hereford-Friesian, 211kg, $680. A consignment of Charolais were sex drafted, and the steers, 268kg, sold for $750, and heifers, 255kg, $630.

TARANAKI Taranaki sale • R3 Hereford-Friesian steers, 481kg, were in high demand at $3.24/kg • R2 Hereford-Friesian steers, 405-496kg, traded at $3.14-$3.22/kg • R2 Angus heifers, 286kg, made good money at $3.11/kg • R1 Simmental-cross and Hereford-Friesian steers, 316-381kg, sold particularly well at $990-$1115 • R1 Angus bulls were stand-outs and 230-285kg sold very well at $1000- $1115 Last week’s cattle fair at TARANAKI had great results all round, with a quality mainly dairy-beef cattle offering well rewarded.

The majority of R3 steers sold in a fairly tight band of $2.94-$3.06/kg, while the balance typically $2.79-$2.84/ kg. R2 traditional and good dairy-beef earned $2.94-$3.11/ kg. R2 heifer prices were a little more varied, though still pleasing with better-quality types earning $2.74-$2.88/kg.

Limited prime stock were well received with steers, 575592kg, at $3.01-$3.03/kg.

POVERTY BAY Matawhero sale • Heavy male store lambs sold for $140-$150

• Heavy ewe store lambs earned $130.50 • Top prime lambs fetched $155-$158 • Prime mixed age ewes lifted to $132-$136 Tallies were up to just under 3000 store lambs at last week’s MATAWHERO sale. TLocal buyers helped the sale flow well. In general, lambs sold well with few selling below $110. Medium to heavy lambs were in demand and this market lifted while light lambs eased slightly compared to the previous sale to $85-$93. The prime market also lifted being helped by strengthening schedules.

HAWKE’S BAY Stortford Lodge prime sale • Very heavy male lambs lifted to $178-$188.50 • Very heavy ram lambs held at $176.50-$196 • Heavy ewes improved to $144-$174 • Very good ewes softened to $133-$143 • Angus steers, 551-569kg, held at $3.03/kg Sheep throughput more than doubled at STORTFORD LODGE last Monday, and buyers were competitive with quality well rewarded. Very heavy cryptorchid lambs improved to $181-$199, though heavy rams eased to $150$152. Heavy mixed sex held at $146.50-$169, as did heavy and very heavy ewe lambs at $142-$189. Ewe numbers also doubled. Top end ewes lifted to $188-$213.50, while good types held at $126-$132.

Light-medium and medium ewes improved to $109.50$130.50, while light ewes mainly traded at $60-$108. Eighty prime cattle went under the hammer, with the majority steers. Twelve very good Angus heifers, 550kg, were well received at $2.88/kg. Stortford Lodge store cattle and sheep Good to heavy cryptorchid and male lambs held at $140-$155 Ewe lambs came back, with most trading at $90-$115 R2 Angus steers, 515-539kg, firmed to $3.02-$3.09/kg R2 Hereford-Friesian heifers, 366-451kg, firmed to $2.62$2.72/kg Weaner Friesian bulls, 156-193kg, sold for $530$650 Cattle quality was good at STORTFORD LODGE last Wednesday, though lambs varied. The lamb sale was split, with most males holding value, but ewe lambs came back.

Top ewe lambs made $124-$145, while mixed sex ranged from $88 to $142.50. Breeding ewe prices were subdued and four-six tooth Romney, scanned 160%, made $182.50, and two-tooths, run-with-ram, $125-$129.

The cattle sale was only moderate but had good quality in the pens, which attracted outside buyers. R2 Simmentalcross steers, 444kg, made $2.67/kg, though 389-447kg Angus &amp; Angus-Hereford were discounted to $2.67$2.74/kg. R2 Friesian bulls, 478kg, held at $2.36-$2.45/kg.

Standout lines of weaners included Angus steers, 277kg, $910, and Angus and Angus-Hereford heifers, 278kg, $800.

Dannevirke winter ewe fair • Very good two-tooth Romney ewes, scanned 156% to Romney, made $197-$214 Four-tooth Romney ewes, scanned 160% to Romney, earned $191-$200 Six-tooth Romney ewes, scanned 164% to Romney, traded at $181-$182 Four-year Romney ewes, scanned 172% to Romney, made $190$191 Good to heavy cryptorchid lambs sold for $140.50-$146 Heavy rain did not deter attendees to the DANNEVIRKE winter ewe fair last Thursday, with two big consignments of capital stock a drawcard. The majority were Romney ewes, scanned-in-lamb to a Romney ram, and Manawatu dominated the bidding.

Expectations were met, with second and third cuts of two-tooth’s making $161-$182, while mixed age traded at $160-$184.

Close to 2000 lambs were also penned and good ewe lambs earned $130-$131.

MANAWATU Feilding prime cattle and sheep • Prime lamb throughput remained at 3900 • Very heavy male lambs held at $170-$179, with top lines to $180$183 • Angus and Angus-cross cows firmed to $2.00-$2.10/kg • Boner Friesian cows, 515-585kg, rose to $2.00/kg • Boner Friesian cows, 470-505kg, held at $1.88/kg The prime cattle yarding at FEILDING last Monday housed 207 head. Lighter beef-cross cows sold to $1.96/kg.

Good boner heifers achieved $2.11-$2.20/kg, with most at $1.89-1.97/kg. In-calf cows sold to $2.00/kg, with the next cut down at $1.78-$1.81/kg.

Top ewe lambs made $169-$173, with middling examples at $157-$159. The biggest category was male lambs, with most selling at $170 and better. Mixed sex reached $173$176, though most returned $159-$169. Ewe volume was double the previous week at 1400, and prices firmed. Very good ewes reached $164, with very good types at $152-

SALE YARD WRAP

FARMERS WEEKLY – farmersweekly.co.nz – June 17, 2019

39

WET: Heavy rain did not deter attendees at the Dannevirke winter ewe fair last Thursday.

$155.50. Good ewes returned $144-$149, and mediumgood, $129-$138.

Feilding store sale • Exotic and traditional R3 steers, 535-580kg, were $2.90-$2.95/kg • R2 Angus steers, 465-515kg, went for $3.08-$3.10/kg • R1 Friesian bulls, 175-185kg, were strong at $635-$650 • Good four-year Romney ewes, SIL twins, made $196-$221 • Average store lamb price was steady at $129.50 Around 700 store cattle met a solid market. R3 steers were a bit softer, with straight-beef options down 5-10c/kg, however the R2 steers tracked upwards by a similar degree.

Straight-beef R2 heifers sold well, putting 400-420kg lines at $2.87-$2.97/kg. Breed didn’t matter much below 350kg as all 295-340kg heifers went for $2.59-$2.77/kg. Only a single line of 370kg R2 Friesian bulls made $2.56/kg. Traditional 205-210kg R2 steers went for $745-$760, $3.58-$3.62/kg, while 175-185kg Friesian bulls were $635-$650, $3.51-$3.67/ kg and 240-270kg traditional R1 heifers made $780-$790.

There wasn’t much change in fortune on the 2200 in-lamb ewes. Any medium-quality lines either small in number or with low scanning percentages were $128-$149, rising to $153-$186 for 170-180% two-tooths and good-condition older ewes. A pen of early scanned in-lamb two-tooth Romney’s were the strongest at $222. The very top male store lambs went for $161-$179.50, however other goodto-medium male lambs were more like $141-$151.50. Ewe lambs maxed out at $144-$144.50, with the majority of the better ewe lambs $129.50-$141 and the rest $100-$119.

Rongotea • R2 Hereford-Friesian steers, 337-434kg made $2.33-$2.58/kg • R2 Angus steers sold for $2.60/kg • Yearling crossbred heifers, 297kg, fetched $580 • In-calf Jersey cows traded at $600-$710 Dairy cows were the main feature at RONGOTEA last week with very few store cattle on offer, NZ Farmers Livestock agent Darryl Harwood reported. Heavier weaner Hereford-Friesian steers, 215-255kg, strengthened to $610$660, while Friesian bulls, 200-214kg, made $570-$610, and Angus-cross bulls 207kg, $460. Friesian boner cows, 535kg, sold well at $1.64/kg, while crossbreds sold in a wide range of $1.48-$1.84/kg. Hereford-Friesian boner cows, 542kg, made good money at $2.08/kg, while Angus, 610kg, were just below this at $2.05/kg.

CANTERBURY Canterbury Park • Heavy ram lambs made $142-$151 • Heavy mixed sex Corriedale lambs sold for $134 • Top prime lambs earned $180-$220

• R2 Hereford steers, 451kg, made $3.02/kg • Good quality prime steers were $2.74-$2.78/kg The market for good and medium store lambs was strong at CANTERBURY PARK which lifted the overall average price by $7 on last sale. Prime lamb numbers lifted, and mainly sold for $130-$170 with the top lambs earning $170$209. Prime ewes strengthened and the top end fetched $200- $265. The store cattle market had mixed quality, which was reflected in prices with better R2 steers mostly $2.60-$2.74/kg and off-types discounted. Lifting schedules helped the prime market hold steady despite increased throughput. Good quality steers sold well, while heifers mostly fetched $2.53-$2.65/kg. Boner Friesian heifers, 475515kg sold well at $2.30/kg while boner Friesian cows made $1.70-$1.73/kg.

Coalgate cattle and sheep sale • R2 beef-cross steers, 445kg, made $2.60/kg • Prime steers, 425-460kg, $2.57-$2.66/kg • Most mid-range prime lambs went for $160-$179 • Store lambs mostly sold for $130-$139 Prime lambs turned out in force at COALGATE last Thursday, to boost the sheep yarding to almost 4500. Prices for prime lambs firmed by $5, where better lambs sold for $200-$212 and medium-good fetched $180-$190. Prime ewe numbers were up by 500 head and prices fell slightly overall after the previous weeks good results, though the best lines reached $205-$219.

The bulk traded at $122-$158. A wide selection of store lambs meant big variance in prices, starting at $70 and selling up to $139.

A larger tally of cattle was yarded with 103 store and 67 prime. All sold to similar levels as the previous week. R2 beef-cross steers, 325-365kg, sold to $765-$840, 2.29-$2.33/ kg while R2 heifers of similar breeding and 330 – 350kg earned $680-$730, $2.06/kg.

SOUTH-CANTERBURY Temuka prime and boner cattle; all sheep • Good mixed sex lambs varied from $94 to $137 • Good to heavy ewe lambs held at $116-$127 • Prime Angus steers, 462-536kg, held at $2.64-$2.69/kg • More than half the yarding of boner cows made $1.43-$1.53/kg Store lambs hit the next phase in the seasonal cycle at TEMUKA last Monday, with a big variance in quality.

Nearly 6000 were penned and mixed sex eased, including a consignment of halfbred. Most were medium types at $90$113, and heavy, $137-$149.

Prime lamb and ewe entries sat around 900 head each, with results varied. Lambs firmed and the bulk earned $120-$188, while most ewes eased to $100-$158. Very heavy

ewes did reach $190-$161. A yarding of 583 cattle met firm buyer demand, with increased volume of steers and heifers. Steers over 550kg typically sold for $2.64-$2.74/kg, regardless of breed. Boner cow prices were steady, and 500630kg traded at $1.47/kg, and 460-485kg, $1.42/kg.

Temuka store cattle • R2 Angus steers, 372kg, sold well at $2.88/kg • R2 Angus and Hereford-Friesian heifers, 355-379kg made $2.68$2.78/kg • R1 traditional steers, 216-283kg, earned $760-$840 There was a small yarding of 586 head penned at last week’s TEMUKA store sale, with the market steady to lifting and a good bench of buyers from mostly mid-south Canterbury. R2 beef-cross and exotic-cross steers mostly fetched $2.60-$2.70/kg. Heifers generally lifted with most up to $2.58-$2.61/kg. R2 bulls were mainly Chatham Island cattle and buyers looked to have per head budgets in mind with these selling in a range of $690-$770. Traditional R1 steers and heifers sold well, and dairy-beef heifers strengthened to $615-$635.

OTAGO Balclutha • Heavy prime lambs, made $140-$165 • Medium prime lambs sold for $130-$150 • Heavy prime rams were steady at $100 • Top store lambs held at $110-$120 There was a reasonable yarding of prime sheep at last week’s BALCLUTHA sale, although prices eased with mediums at $120-$130 and light $100-$120. Prime ewes held a little more resilient with the heavies at $150-$170.

There was a large yarding of store lambs, and while the top end held medium and light lambs eased, as most farmers already have winter numbers.

SOUTHLAND Charlton sheep sale • Heavy prime lambs made $160-170 • Heavy prime ewes strengthened to $190 • Heavy local trade rams made $90 • Top store lambs fetched $115-$125 There was a good number of prime lambs on offer at CHARLTON last week, which sold on a steady to lifting market. A small number of prime ewes also lifted $14 at the top end, with mediums and lights also selling well at $100$160.

A large yarding of store lambs had strong demand although prices varied, with light lambs softening to $60$85.

Markets

40 FARMERS WEEKLY – farmersweekly.co.nz – June 17, 2019 NI SLAUGHTER STEER

NI SLAUGHTER MUTTON

SI SLAUGHTER LAMB

($/KG)

($/KG)

R2 HFD-FRSN STEERS, 360-380KG, AT TARANAKI CATTLE FAIR

($/KG)

($/KG LW)

5.55

5.30

7.45

3.06

$170-$183 high $191-$200 Romney ewes, Very heavy male lambs at lights Four-tooth Feilding Prime Sale 160% to Romney ram, at Dannevirke Ewe Fair

Fixed milk price popular

F

Change of quality takes shine off market

VALUED: Strong participation in Fonterra’s Fixed Milk Price first round shows farmers appreciate have a tool to help reduce their price volatility risk, Farm Source group director Richard Allen says.

Ultimately, it’s not about winning or losing but about having a price you can bank on.

Richard Allen Farm Source settlement price on June 5, 6 and 7.

Farmers with a FMP agreement pay a service fee of 10c/kg for the contracted volume and will therefore receive $6.65 in payments spread in accordance with the advance rate schedule.

The service fee pays for the administration of the programme and Fonterra said it will have greater certainty on margins by locking in fixed

RAIN GEAR

contract prices with its customers.

Even if the milk price subsequently drops Fonterra will get the contract price for the dairy products and therefore the FMP scheme poses no risk to the cooperative and shareholders who do not participate.

Futures broker Nigel Brunel, principal of OMF, said the results of the first fixed milk price offering are encouraging for farmers, the industry and the practice of price hedging generally.

“Whether those farmers who took up FMPs would have used the milk price futures market remains to be seen.

“Futures are available every day while the fixed price offering will only be 10 times a year.”

NZX milk price futures for September 2020 settlement are trading at $6.75/kg MS and for the following season $6.70/ kg MS.

STORE lambs are still the focus at most yards and volume continues to be high enough to attract a steady flow of buyers. The sale yards have, however, shifted into the next phase of the store lamb selling season. As the days get shorter and feed levels tighten up, the need to look after ewes means any lambs left are shipped out the gate. PGG Wrightson agent Jonty Hyslop says “Now that we are getting toward the end of the lambs we are seeing everything, warts and all.

Quality is compromised as most vendors can’t fatten any more and are offloading.”

Also noted at Temuka was a reduction in competition from regular buyers. Mid Canterbury is typically very strong but there was an obvious drop in interest last week.

“Those regular buyers that have been relied on throughout the season were not as powerful, with most now at winter capacity,” Hylsop reported.

The change can be seen at the North Island yards too, with larger instances of ewe lamb lines as farmers draft out replacements and offload the surplus. While mixed sex are now few in number they are trading at a clear discount to males though results are similar to ewe lambs.

Manawatu PGG Wrighston agent Phil Transom said any price adjustments have been quality related with demand remaining at high levels.

“Quality is starting to taper off and that is the main influence on any softening of prices. With so many lambs coming through Feilding some weeks saturation points were reached but prices were back up the following week. Demand has held up right to date as new grass and crops have been slow to get going, which has meant some buyers are coming to the market later than is typical, keeping the competition on the rails.

I don’t think anyone can complain about the prices this year and I haven’t heard anyone do so.” Transom also suggested if sellers are down to the tail end lambs it is still worth sex drafting to reach the optimum price for them. “Small lines of males especially will sell at a premium to mixed sex lines so it is worth the little bit of extra effort.” suz.bremner@globalhq.co.nz

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ONTERRA’S new fixed milk price scheme got off to a brisk start with 215 farms locking in more than 11 million kilograms of milksolids at $6.75/kg.

The June offering was the first of seven in this season, to be followed by 10 offerings in every successive season.

Fonterra’s Farm Source group director Richard Allen said the co-operative made 15m kilos available so applicants received all the quantities they applied for.

Farmers can apply to fix up to half of their planned seasonal production and Fonterra plans to offer a total of 5% of its milk collection for a season, about 75m kilos.

Allen said farms of all sizes participated and about 60% of them applied for less than 20% of their estimated seasonal production, implying they are bigger farms.

Some 40% of the applicant farms produce more than 200,000kg MS a season, including 10% over 400,000kg MS. There was a perception the tool would suit larger farms but the range of participating farm sizes showed that is not the case.

“It was great to see a lot of smaller farms participate as well as farms from right across the country.

“Ultimately, it’s not about winning or losing but about having a price you can bank on.

“The strong participation shows farmers appreciate having a tool that can help reduce their risk to milk price volatility.

“While most farms can operate in a volatile market, some farmers – maybe young or near retirement – can’t or aren’t willing to take on as much risk.”

If the co-operative can help them reduce their exposure and stay in the cooperative with no downside risk to other members it was a win-win.

“For those on the fence, I urge them to have a closer look at Fixed Milk Price and specifically how this tool is much improved over the previous guaranteed price programme.”

The fixed price was based on the average of the NZX milk futures

ACROSS THE RAILS SUZ BREMNER